Structuring Equity Partnerships

[Caleb Smith]

I am looking for help setting up partnerships for future property purchases.

I know Brandon Turner mentioned on the podcast that he would create 50/50 equity partnerships where somebody brought the down payment and he would find and manage the deal.

With me having experience finding and managing properties, but in need of funds, this sounds ideal to me.

Is that how most of you would do the partnership? If not, how would you structure it?

Also, what if we decide to bring in a professional property manager later on? Do we have to restructure the deal?

[Caleb Smith]

@Tim Johnson I understand that the property manager would not get equity if brought in to manage the properties. I meant would I have to reduce my portion of the equity since I would no longer be managing the property myself? I didn't know if that would still be fair to the partner that brought all the money.