Forming an REI LLC as a capital partner
Biggerpockets,
I'm researching forming an REI LLC with my partner where the responsibility breakdown would be I provide purchasing capital and he provides the actual boots to the ground work to find deals, execute, and do maintenance/landlord work on them (and find mortgages for us).
We're based out of the midwest so I figure we'll look into houses fitting biggerpocket's success models (50% rule etc) in the 50-70k range, ideally with mortgages that require 20-30% down.
What is a fair and appropriate ownership breakdown for the LLC? If I am providing all of the capital, and he is providing all of the elbow grease? Should it be 50-50? Something different? What is the best way to calculate my rate or return on my capital given partial ownership?
Thanks.