How should profits be split on a 3-way real estate investment?
I am involved in a 3-way investment on a rental property and we are being forced to sell because of a DOT project. Our profit on this property will be approximately $75,000 and we need to figure out how to split this up. Being close family members, we weren’t too concerned about figuring this out we bought the property. I would really appreciate any suggestions from real estate investors experienced with partnership investments like this. Here are the figures for the capital and work/mangement invested by each party. Investor #1: Invested $150, 000 by taking out a regular home loan. Lived at the property and payed “rent”. Did 85% of the maintenance, improvements and rental property management. Investor #2: Invested $75,000 from a home equity line of credit. Did 0% of the maintenance, improvements and rental property management. Investor #3: Invested $25,000 from a home equity line of credit. Did 15% of the maintenance, improvements and rental property management. Thank you! A: Profits
