Partnership with step-father (doctor), I'm a realtor and husband is a contractor.

[Mallory W.]

Here's the scenario. I have some experience with real estate investing (1 foreclosed residential home purchased through a wholesaler in San Antonio, TX, full rehab, rented it for a year, sold it making a $26,000 cash profit). I've been a member of local REIA's, and took many courses in real estate investing ( I am familiar with creative financing, 1031 exchange, capital gains tax, 70% rule-of-thumb...how to find the good deals etc--- I'd like to learn as much as I can, unfortunately we do not have any active REIA's in mu area). Recently, I received my real estate license for a leg-up: access to MLS, Realtors Association and for networking purposes. My husband is a general contractor and can pretty much build a house from ground up with his crew. My step-dad is a doctor who has a pretty penny invested in stocks, mutual funds, IRA's etc. He pays A LOT of $ in taxes every year. He is more interested in being a passive RE investor and wants to use both mine and my husband's skills and expertise to start investing in Real Estate.

Questions I have:

1. I know how to find the deals, my husband can do the rehabs, and my step-dad funds the deals.  Any suggestions on how we can put these deals together so that it is a win-win for all involved?  I know that seeing a tax attorney and accountant is top-priority, but my concern is ensuring that my step-dad (who has little knowledge when it comes to real estate investing), understands what it means to be a passive investor and what he should expect as far as taxes go.  What can me and my husband expect for tax breaks?  If we're doing all the work

2. Any suggestions on what a fair deal would be?  Would him receiving interest on the deals be sufficient, or should he receive 50% of the profit, receive monthly cash flow?  I'm just so used to dealing with banks and hard money lenders (before I had my real estate license and before I was married to a licensed contractor) that I'm not sure what is fair.  I want to make Real Estate Investing my full-time career, and eventually want to get to a point where I don't need to use OPM, but also want to continue helping my step-dad with real estate investments.

3.  Any Advice?

Thanks!