Syndication/Partnership

[Billy Guyette]

I have a high net worth individual that is willing to invest with me and I'm not sure how to structure the partnership. Along with some property holdings, I have a construction/property management company.  We would be after distressed properties in slightly marginal, but rejuvenating areas to add the most value possible. If my investor finances  100% of the purchase and rehab of the property and my company does all construction work, repositions the property, raises rents, and manages the property, what would a fair split be? I was thinking 50/50 split on everything, cash flow and appreciation. Is this fair for both parties? If things go well with this investor we could do a lot of work together, but I want both parties to be compensated.