Creative Deal Structure on STR with Friends

[Jennifer Walsh]

Hi BP Friends, 

I have an opportunity to partner with good friends on a STR in a northern WI hotspot on the lake! I have the capital, and my friends have all the experience. Have their own management company and other successful STR's in their portfolio. I need some creative ideas on how to structure the deal if I provide 100% of the down payment and their company handles 100% management.

I want to be fair, and also want to keep our friendship and hopefully more deals for us! Thank you for your brilliant ideas! 

Jen

[John Underwood]

Seems like a good way to mess up  friendships. 

That said I would get an attorney to draw up something.  Put every possible scenario you can think of in the partnership agreement including how you would sell property and dissolve partnership.  This would give you the best chance of staying friends in the future.