How to partner on a deal

[Jay Lutz]

Hi all! We (husband and I) have a successful STR in Orlando, FL, and are starting conversations with a friend to purchase another property. We ran into some unexpected costs last year, so aren't able to contribute much to the down payment on the next property right now as we build up our savings again (DP will be her contribution). We have experience with this exact type of rental: we know the business, we know the building, we have the contacts, we've done the management, and had other arbitrage properties pre-COVID, etc. She does not have this experience.

1. How would you recommend structuring this type of deal? 

2a. What's a fair financial / equity split?

2b. How does this break out in terms of profit vs revenue?

3. We'd like some ownership of the property, too. How is that done? Can we ride on our credit for some of the ownership or would we need to put in $$ for the financing, too?

Very grateful for this community and looking forward to helping as I can :)