Advice on how others structure deals with Partners / Investors

[Mike Lane]

Good evening all!! 

wanted to throw something out there and see what has worked for others. Also, I am in contact with my CPA just wanted to hear from you guys as well. I am a fairly new investor. I have a long history in construction but only have a few SF Rentals under my belt. I have done a few flips, and I work with investors on high-end spec builds. However, since discovering BP my investing career has changed course big time.

Heres my question... I have a few people I have worked with over the years that like the idea of buy and hold investments. They see what I am doing and would like to get involved. They do not have the willingness to put in the work. I do not have a ton of capital, I use the BRRRR strategy and occasionally do a flip. I rarely have the ability to have more than one of my personal investments going at a time cause of the cash it ties up. I have people wanting to throw cash at deals but, am not sure how to structure these deals. Obviously, a lot of it comes down to what the partner or investor is looking for.

What kind of experience do you guys have in this? If they are just looking to park some cash and get a payment every quarter how do I structure that? The market I buy and hold in is very "affordable" ARV's ranging from 90-140k. I would love to figure out how to make this work while still using the BRRRR Strategy. If I could have a piece of 10 deals instead of having all of a couple of deals I think its a win-win. Plus I'm keeping my contractor and realtor fed, while also picking up more properties to bring my Property Management Fees down per property.

Looking forward to what you guys have to say. Sorry for the long-winded question.