How to Partner With Other Investors on Buy/Hold Rental Properties

[Kevin Starr]

Hello everyone,

I'm in a pretty unique situation... I have many friends & family with a lot of cash sitting around.  They want to invest in RE but they're either too busy or basically don't have the guts to invest themselves.  I wonder what is the best way for me to partner with them to invest in rental properties (for long term hold)?  I currently own rental properties myself, and have never involve any 'outside' investors.

So, I wonder how I could take advantage of the situation and make it work for everyone?  I basically would do all the due diligence in locating the property, manage all the rehab, deal with contractors & property managers, etc.  All my friends would do is provide the capital for down pmt, rehab & other costs.  I wonder how other people structure this type of deal.  My questions are:

1) Who holds the title?

2) Whose name(s) is on the loan if the property is mortgaged

3) What percentage of ownership is fair for me (ex:  20% of ownership share + 20% of rental income)?

4) Should I put any $ of my own into the deal, or just straight sweat equity

5) Do we need to set up an LLC to do this?

I would appreciate any advice on how to structure this type of deal.

Kevin