Fair Divisions Of Profits In Limited Partnership
I am wondering what the industry standard might be for dividing profits with an investor in an LP. Right now, I am dealing with only one investor, who kicked in $100,000 for a property that I purchased for a total of approximately $216,000. I anticipate putting in about $70 and selling the property for a total of approximately $425,000 (minus a 3% broker coop and closing costs).
What would a "fair" split of profits be in such a situation. I borrowed just over $142,000. My investor said the loan should be considered a loan by the LLC (I put the property in an LLC), not my contribution. I wil pay the interest from the $100,000. I've contributed out of pocket about $50,000.
Could someone give me a straightforward example of a fair and equitable model contract for a partnership of this nature?
Thanks.
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