BRRRR Deal as a Partnership

[Anthony Angotti]

Hello BP Community,

I met an out of state investor that I met here on BP (Thanks BP!) that I would like to start a hopefully long and successful partnership with. 

Both of us are very interested in the BRRRR strategy presented frequently here on BP, but we were looking for guidance on how to structure this so that it is fair to both parties. Our relationship would be one in which he provides most of the working capital, but we both have some money invested. I would locate the property (I'm an agent), do most of the rehab or manage the rehab, provide the property management, and be the eyes and ears on the ground. All of his initial capital would be returned to him in the form of the cash out or the remaining equity in the property. I would receive an equal portion of the profits. Both of us would own the property in an LLC with divided rights to the equity based on what he had left in the property from the initial investment. At least that's how I envision it if that is possible.

For simplicity we are also considering a simple flip, but BRRRR is very appealing. I was wondering if it was possible with a partnership.

Thank you in advance!

Tony