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Dear Real Estate Investor:

Have you ever wondered what is a “fair” split between partners in a real estate deal? How much should you compensate someone who found the deal, raised money, or used their credit to get a loan? People can contribute many things to a deal, how can you compensate that person fairly?

For example, if you are working on fixing up a property with the intention of selling it off quickly, you use person A to get the loan using their credit, person B to invest the cash, person C to contribute their “sweat equity”, and you simply sit in the middle of all this managing the process. What is fair compensation to everyone?