How do I structure a partnership? 8 Unit in Texas.

[Jess White]

Looking to partner up on an 8 unit deal in Texas. Except there’s one issue, I have no idea how to form a partnership of anything like that. I’m guessing there are plenty on people on here that don’t know as well, which is why I’d love to hear some responses on this so we can all learn. 8 units: 380k --- Gross rent annually 60k It would be between 2-3 people total.

[Phil Goodwin]

I had a meeting today with a potential investor.  It is really up to how your team wants to do it.  Some investors are happy getting a preferred return of 9%, 10%, etc.  They get this money before you take a profit.  Other investors are willing to split the equity in the partnership based on the the cash each person injected.  If you are putting the deal together and will act as the manager of the property (collecting rents, screening tenants, coordinating repairs, banking, accounting, etc) then you should deserve something for your time.