Land Tank / Partnerships Question

[Nick Roberts]

Hey guys! I’m currently on the waiting list for the pro membership so apologies if this is answered in the courses or elsewhere in Land Academy but I had a question about Land Tank and Partnership structuring.

I’ve seen that many of the completed deals are 50/50 splits where one party is in charge of the deal and the other party is provider of the funds – pretty straight forward.

My question is are there other methods of structuring deals where one party takes on more responsibility than usual e.g. if you’ve got the cash AND have marketing experience but you just haven’t had luck with deal flow and simply wanted an acquisitions partner. Another alternative might be the reverse – you’ve found plenty of great deals but they’re in a brand new county so you’d like some cash AND a marketing partner.

How are partnerships structured in these cases? I know I’ve heard Jill and Steve talk about this from time to time on the podcast but haven’t seen any examples.

Thanks!
Nick

Topic

[John Pitkin]

#29275

There are a lot of ways to handle this. A few of my deals have been funded by others, with a 50/50 split. Based on my experience, I feel that a 50/50 split is a good starting point… but everything is negotiable. After you have developed a good working relationship with a funder, you will start to form opinions about what roles each person does best, then revise your partnership agreement (and profit split) based on that.

[Nick Roberts]

#29280

Awesome, thanks John!

[Jonye Deepa]

#30425

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