Investing for others

[Matthew Stallone]

Hi all,

I hope this is in the correct place.

I've been investing for a couple years now and have 5 doors all cash flowing fairly well. I was approached by a family friend and their associates to partner up. They had a couple properties up in NY and it was a pita, they want to be completely hands off and not worry about squatters along with better returns. I'd be in charge of essentially everything aside for fully funding. I'd find the deal, work with realtors, work with contractors to fix them up, work with property management, and do everything as if they were my own. We met and they tossed some numbers around, but I dont believe this will work for a couple of reasons. They mentioned me putting down a percentage and they would match it at a 1.25 rate. I would also be part of the llc. So I put down 20% and I would own 25% of the property, receive 25% rent, pay for 25% of the reno... 

This wouldn't work for me because 

A: I dont have the kind of money to throw down on multiple properties per year.

B: I dont believe this would even be a benefit as opposed to myself just throwing down 10 to 20% on a property myself with a mortgage.

(I ran some numbers and it seemed like I would make less working with them) I'm not even sure how I would calculate the tax benefits.

Is this a common situation, if so what are typical terms?

I was thinking of coming back to them asking if they funded 100% and I received a % just like a property manager would (10-15%?)

Thanks all!