STR Operator with 4 JV Properties — Am I Structuring My Deals Wrong?

[Ariel Reboh]

Hey BP community — looking for honest feedback on how I've been structuring my JV deals as an STR operator, and how I should approach future ones.

Quick background: I'm an STR operator in the Pocono Mountains with 4 Airbnb properties, all structured as joint ventures with capital partners. I handle everything A-Z — finding the deal, sourcing lenders, managing designers and contractors, setting up the entire Airbnb operation to perform at the top of the market, and handling ongoing property management. My capital partners bring the money. All properties are currently under the investors' names with me in the operating agreement.

Here's how my deals have evolved:

Deal 1 (purchase price $275K): Because I couldn't get a mortgage under my name at the time, my investor renegotiated last minute and I ended up agreeing to 90/10 in his favor, a $13K setup fee, and 10% management. I don't take any equity split until his full investment is returned. Projected $60K/year — we are on track for $90K. Hard lesson, but I learned a lot.

Deal 2 (purchase price $470K): 32% equity for me, $25K setup fee, 10% management, plus 10% of net cash flow monthly. Going live soon and I've cut the ramp-up time from a year down to about 6 months thanks to the learning curve.

Deals 3 & 4: 35% equity, $25K setup fee, 15% management.

Deal 5 (currently under contract in Clearwater, FL): Back with investor from deals 1 & 2 — 28% equity, $21K setup fee, 10% management for 3 years then bumps to 15%.

Here's my honest frustration: from day one I wanted to do 50/50 with a below-market management fee. I put my heart into these properties like they're my own — because to me, they are. But because I set the bar low early on, it's been hard to reset expectations with existing investors. I don't take anything from cash flow until the investor's full capital is returned — then we split equity. In the meantime all I'm collecting is the management fee, which is well below market given the scope of work.

My questions for the community:

1. For operators doing JV deals — what equity split and fee structure do you think is fair given everything I'm describing?

2. Any red flags you see in how I've been structuring these?

3. Where do you guys find your capital partners to JV with?

Would love to hear from anyone who's been on either side of a deal like this.

[Nicholas Cokas]

Hey Ariel —

Your equity is too low for the work you're doing. Not by a little.

Look at what you're bringing: deal sourcing, lender relationships, design, furnishing, operations, guest management, maintenance coordination. The capital partner writes a check. That's it. In most operator-GP structures where one side does everything and the other side funds, 50/50 equity is the floor, not the ceiling. Some operators take 60/40 once they have a track record — and you clearly have one.

The setup fee math is fine. $25K on a $470K deal is 5.3% of purchase — standard acquisition/setup range. But here's where it gets sideways: you're charging 10% management on STR properties where full-service management runs 20-25% in most markets. So your "management fee" is actually a discount you're giving your investors, and then you're also giving them 65-90% of the equity. You're subsidizing twice.

Deal 1 tells the whole story. $275K property doing $90K/year gross. That's a 32.7% gross yield. Your investor is getting a monster return and you took 10% equity and below-market management. That deal alone should be your pitch deck for every future conversation.

Three things I'd tighten up:

- New deals start at 50/50 equity with a 20% management fee. Your track record justifies it. If an investor balks, they don't understand what operator risk actually costs

- Get your exit terms in writing now. What happens at sale — does the investor get their capital back first, then split profits? Or pro-rata from dollar one? This is where JVs blow up

- The 10-to-15% management bump on the Clearwater deal after three years is backwards. You should be at 20% from day one on a coastal STR where insurance, hurricane prep, and seasonal management add real operational weight

For finding new capital partners: stop looking for "investors." Package your Deal 1 returns into a one-pager. $275K in, $90K/year gross, proven operator. That's not a pitch — that's a receipt. Post it in the BP marketplace, send it to your existing investors' networks, and let the numbers do the talking.

You don't have a structuring problem. You have a pricing problem. You set the floor too low on Deal 1 and every deal since has been a negotiation up from that anchor. Reset the anchor.

Happy to look at any of the operating agreements if you want a second set of eyes on the terms.