Business Agreement Help

[Mike Miller]

My wife and I are starting our STR journey. We are under contract on a new build and expect to close in next few months.

My uncle (retired) is helping with down payment and such but will largely be silent. Cash investments will be split 50/50. My wife and I will handle all the day to day management, bookkeeping etc.

What is the best way to structure the deal and account for my wife and I sweat equity. So far everything has been discussed 50/50 annual cash flow split 50/50 and tax losses (most likely off my mine and my wife’s W2 income).  To some extent I guess we are ok with that model of splitting everything 50/50 as neither one of us really wants to pull the money out. 

My uncle typically invest in the stock market and really has no interest in pulling the money we make assuming we make good returns.

I guess my concern is that my wife and I benefit or get paid for our management efforts. Additionally, my uncle has brought up his estate and making sure all his siblings and nieces and nephews (including me) get a fair shake should he pass down the road (he’s 75).

What’s the best way to deal with a partner passing and paying his estate for his equity because I don’t want to do business with his executor?