Partner with a company on acquisition, renovations and management

[Leon Lee]

Hi, Fellow BPers

I have a quick question on partnering with a company on acquiring, renovating and managing commercial properties (hotels, vacation rentals) as a contractor and wonder whether you more experienced investors could give some advice on that:

I am currently working (as a contractor) with a syndication company that has very strong capability to raise funds (they raised close to $100M last year). After some initial collaborations, they saw that I am really into real estates and demonstrated some track records on improving some of their current portfolios. Since they are a start up company whose real strength is in raising capitals, they mentioned the possibility of partnering with me on all hospitality related projects. Basically, they would like me (and the team I build) to search, acquire, renovate and manage all of their hotels and short-term rentals and split the profits with my team. This way, they will have less overheads on employees and are also less distracted from their main focus, i.e., raising capitals and other RE projects. 

The conditions they provide are quite nice for a relatively new investor like myself, basically splitting (almost) 50% what a GP generally has in a syndication deal plus 20% management fees. As I really enjoy working with the team and the company, but also know that a good contract will avoid lots of drama in the future, I wonder what points that I need to especially pay attention to when drafting such a partnership contract. Once I have the outlines for the contract, we will hire a lawyer to draft it. 

Thanks for you inputs in advance!

Lee