How do I structure this deal - 2 scenarios

[Libby Tucker]

Hi everyone, I'm new to this site, and I consider myself a new investor.  

I have 2 properties in Seattle.  One I split into 2 separate 2 bedroom units, the other is a houseboat and I negotiated seller financing.  

I've been a landlord for 10+ years.  I've done most of the work myself, or worked with contractors to do fixes, remodeling, rehabbing, etc.  I have directly managed tenants, and I've worked with AirBnB, and property management companies.  

I'm now in New York City / Brooklyn.  

My day job is a tech startup entrepreneur.  Currently I don't have funding for another property, and don't have cash to put down on a seller financed deal.  But, I have a business that has a community of other entrepreneurs who need a place to live and work, both short term and long term stays, and I have a waiting list.  Instead of renting spaces, for obvious reasons I want to buy.  This is a business I want to start in NYC and expand to other locations, buying multiple properties to do the same thing.  

I have 2 situations on the table for a property in NYC.  

Scenario 1: 

Company A has done this type of housing before, has 2-3 years experience, a semi-known brand in the space, and also has a list of potential tenants.  They are based in San Francisco and would like to expand.  

They do not have money to invest right now.  They offered me 25% cashflow and no equity in the building (if/when purchased), and no equity in the parent company, unless I gave them my business then I would vest to 1% after 4 years in theirs, current valuation approximately $2 million.  

Additionally I am tasked with doing all of the legwork on the ground - finding the space, putting in offers, etc. 

Scenario 2: 

Company B has cash to buy a property.  The want a 6% return cashflow.  They are interested in my business because they don't have to do any of the work.  I maintain the space, I find tenants, etc.  

They asked for equity in my business.  I said yes, but that I also wanted equity in the building in exchange for acting as the operator - I am out finding and viewing and vetting properties and would be involved in any construction.  

They asked why I would want a percentage equity in the property and don't seem to want to JV.

Summary: 

I have a JV/LLC opportunity to give a solid return and I'm doing the legwork. But I'm not sure that either is a good deal. I would like to counter with a sensible offer but I'm not 100% sure how to structure it.

Do we create an LLC for the entire project and become co-owners in both the business and the property?

If I have no upside in the building, i.e. no equity, why would I not just rent (and pay less than 6%) until I buy a property with my own money?  

For obvious reasons I prefer to buy.  I have 4 years experience living and subletting in this market in NYC.  I have local contacts including real estate agents and contractors.  

Does anyone have any advice on how to structure this?  Am I just not explaining the deal right or am I not talking to the right people?  Or am I way off? 

Thank you so much.  I've been banging my head on the wall for many months trying to figure this out.  

Appreciate any insights! 

Libby