May have big money investor/partner and need advice

[Brian R.]

Hello.

I have a scenario I would like to get some feedback on. I currently have no money to invest but I am a fast learner and the wife and I rented out her condo when we got married for a few years. I know some stuff and can learn the rest by spending all of my free time doing research and speaking to professionals. Here is the question.

I have a friend who I spoke to about investing in rental homes. He mentions his Brother In Law who lives outside the country and is not a citizen (my friend is a citizen) asked him to invest in real estate and manage it for him a few months ago when they visited him for a week. To be clear his BIL has cash money to invest in real estate. My friend told him he knew nothing about it and that was that. Now that was a few months ago. He still needs to find out if this cash still needs a home but he trusts me and knows I will work hard to ensure we make money. This cash is over a million dollars and I just want to get some tips on how we should set up this partnership and what percentage should I get for doing ALL of the work. My friend would not be helping in any way. The BIL would likely just give him the money so I would be partners with my friend. Any and all suggestions are welcome. It is still a long shot on whether this will happen but I may have other investors that could do maybe half a million if this falls through. I understand you not wanting to wast your time on a hypothetical scenario but I would appreciate it if you do.

My basic plan is to buy several 3bd, 2+ba homes (around 150k each), leaving plenty in reserves. This would be done one home at a time possibly at auction or foreclosures since cash would be readily  available. Once it is made ready and rented then buy another. Cash flow would be coming in from the rents and at some point we would probably need to start taking mortgages out on some of the properties to purchase additional properties. No money would be taken out for many years. I would be working for my percentage of the company, basically earning my equity. At some point I may need to quit my job and do this full time and then I would also need a salary. I would love to have that problem. The goal is to buy as many cash flow positive properties as we can manage for 10 to 15 years and then retire comfortably.

Thank you for any input you may have.

Brian