Structuring Deals with Investors

[Mike Dizgun]

Hi Everyone,

My brother and I began investing in real estate this year in Montreal, Canada. We bought our first rental property on our own and have done really well renting it out through Airbnb. Someone in our inner circle heard we were doing well, and wants to invest with us as a passive investor. We are going to continue looking for investors who can provide the capital, while we manage everything else about the property. I have a couple of questions relating to this:

1) I was hoping to get some peoples take on what they think we should offer as a structure to potential investors. Does it make sense (and is it fair) to offer a 50/50 split on rental income, as well as 50/50 split on appreciation when sold?  

2) Is it fair to ask these potential investors to go on the mortgage with us? We both have full-time jobs aside from real estate, so we can qualify on our own for smaller deals. But as the deals get bigger, and the more loans we have, I assume that we will need some help in terms of qualifying. 

Any suggestions would be greatly appreciated!

Thanks,

Mike