Partnership structure

[David O.]

Hi All,

I am considering entering into some parterships in different parts of the country. I am mulling over the following and would appreciate hearing your thoughts: 

As an out of state investor in these markets (implementing a Buy - Rehab - Rent - Refi strategy) I will need to:

1. Source Deals 

2. Have a trusted source estimate the rehab 

3. Acquire the property

4. Complete the rehab 

5. Have the property managed. 

If I am providing all of the capital and I partner with some one who lives and works in that market what would you see as a fair equity split?  My thinking is having that individual an equity owner in the deal is most appropriate if I want to align our interests long term. 

The partners I am considering our real estate licensed with property management business's in place and also experienced with rehab. I see multiple areas where they will have many benefits through the whole transaction. 

I also recognize I will be 100% financing the deal thus take 100% of the financial risk. It is in my best interest to own 100% of the deal. On the other side of that, I understand that if I find the right relationship and allign the incentives it will allow me to complete deals with a lot less stress.

I hope this is a clear question.