Partnering Structure of equity / profits

1 Reply

Hi All,

Currently working on figuring out how to best structure a potential partnership.  General overview is each person would contribute roughly the same amount for a downpayment.  The plan is for a long term rental property to generate cashflow.  This would not be a flip or short term venture. 

Person A has much more expertise in regards to renovation, buying property, filling with tenants, property management, etc.  

Person B will be contributing roughly the same amount of money and help with initial renovation, but be mostly hands off after that.  

Looking for ideas from the community about how to structure things in a fair enough manner.  Not sure if Person A should get more equity, more cash off the top before splitting cashflow, etc.  Open to any and all ideas for how this should be structured, or for how you have structured similar arrangements in the past.  

You could just pay person A for their services and treat it as an operating expense before cash is distributed, especially if they will be managing the property on an ongoing basis

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