Structuring a Deal

[Jesse D.]

Hello all,

I’ve had a few offers from people to provide capital for an investment property if I do the management/transaction (I’m a realtor). How do you guys usually structure deals? 

Is it as simple as putting together a word doc delineating what each party is responsible for and % owned by each? E.g., realtor (me) will manage property and be the selling agent/can put some of my commission towards the property & the other party will provide remaining capital? Along with an exit strategy such as once the property value hits $1M we sell and % profits distributed to each party? 

Is it set up as an LLC?

Any info/advice would be helpful, thanks in advance!