Capital investor for STR

[Kristin Drumheller]

I have a good friend looking to invest some capital in real estate. We currently have a couple units in different asset classes that are doing well so he’s looking to get involved.

We are bringing the deal and handling management and looking for a fair way split DP and profits from a STR here locally. I have seen other similar posts that recommend they bring the entirety of the down payment and the profits are split 50/50 from there.

My original thought is 60/40 split on down payment (him bringing the majority), 50/50 ownership, we take a 20% management fee, and all other profits are split 50/50. Does this seem reasonable?

[John Majoris]

I wouldn’t do anything that doesn’t give me 51% of ownership/decision making. 

Input of others is great, but I’m just not interested in debating how to manage, what kind of replacement appliance to purchase, or how many pillows should be on the couch.

But that’s just me…