Starting Joint Venture

[Cory Fowler]

Myself and two friends are wanting to take a stab at the real estate rental business. We envision ourselves partnering in the following manner - two of us serve as the rental manager and contribute capital to the initial purchase. The third is solely a financier, providing capital as well. We would want to structure cash flow such that 30% of all net profits is distributed to the two managers. Then, the remaining 70% is distributed equally to everyone based proportionately to heir capital investment. I'm looking for feedback on recommendations for structuring such a deal? Should we form a LLC for the three of us, two of us? Should we not form such an entity and reach a legal agreement on finances, exit strategies, etc. and then just have the property be in one of the managers names? I've read differing opinions on BP about LLCs and financing and was curious how that might affect us as well. Basically, I'm highly interested in y'alls opinion how to best structure and pursue such an arrangement. Thanks!