How to structure JVs on buy and hold deals

[Shaina Stevens]

Hi,

I have been a passive reader in this forum so far. I am a buy and hold investor from California and I invest in deals in the Midwest.

I need some help on how to properly structure a JV on a rental property. I am a buy and hold investor and up until now, I have been buying the properties with my own funding. A few local investors in CA heard about my deals and they would like to invest with me. I have never done a JV before and I don't know where to start. How would you guys structure the contract? Should I have them provide all the funding and give them half of the deal (upside and liabilities) or should I just offer a good interest rate and take the remaining cash flow and take care of the downside myself?

Also, a few of these investors would like to talk to my team in the city where I buy my properties. I feel like they are going to cut me out of deals in the long run, using the team that I have in place. I want to avoid this since it was hard work to find my team.

It would be great if you could share your experience if you have done buy and hold JVs before.

Thanks so much!