Working with Investors

[Michelle Romero]

Hi All! I'm a newbie looking to get involved with STR's I'm finding it difficult to finance anything with the way that the market is right now. I am considering partnering with a couple of other investors and was wondering if anyone can point me in the direction of how a deal would be structured? Thanks !!!

[Scott Winter]

"this is not legal advice and I am not a lawyer" 

Some typical options that I know of:

• joint venture agreement 
• partnership
• llc

Each of these, would require the participants to lay out specific details such as who does what, how much each will invest, and how ownership/profit will be split.  The more details that are set upfront, the better chance all parties can mitigate challenges with the partnership. 

For illustrative purposes:

• Person 1: $10k tasks A, B, C 30% ownership
• Person 2: $10k tasks D, E 30% ownership
• Person 3: $40k no tasks. 40% ownership