How to split profits on a flipped property?

I plan on flipping properties with 2 other silent investors. We have formed an LLC and they will be responsible for all financing/cost of improvements. I will be managing all other aspects of the flips (sourcing properties, attending both buying/selling closings, hiring contractors, managing time, working with selling RE agent). How should we split the profits.How to split profits on a flipped property?
This may not be the best market for you to be starting a house flipping business. Properties are sitting on the market for a while in most areas. You'll need to be very confident in your business model to proceed.





With that said: You're going to have to structure your profit sharing agreement in a way that is attractive to everyone involved. It sounds like you will be doing all the work, but seeing very little of the risk since you aren't investing your money. Your partners are doing little to no work but exposing themselves to a big risk.





You're going to have to get paid for your time, they're going to have to get an attractive return on their investment. It would seem to me that each project would need to have an specially constructed contract.





Obviously the most basic sharing of profits would 1/3 of the money to each of you. This would really only make sense if each investor put forth the same amount of money, and they agreed that your time is equal to their risk. Without knowing how much money each investor is fronting this is a tough question to answer. Sit down with your partners and reach an agreement. Remember that you need to make enough money so you can pay your own bills, but at the same time your investors will probably want at least a 10% return on investment.