Best way to structure a real estate, SFH rental, deal

[Kevin Mitchell]

I am in a unique situation in which prospective tenants reach out to me to find them a place to live and rent. More unique than just that but for the sake of the conversation and questions I need answers on, the above summary should suffice. We have 6 cash flowing properties and my liquidity is quickly drying up. My father has noticed my success and wants a piece of the action.

With that being said, from a financing perspective we need to finance them in our personal names in order to utilize the type of financing we require to make these deals work. We both agree we want some type of contract between us outlining the details of our operation. Figured I would check here to see if there are known resources before we go the lawyer route. Would like to structure it 51% me 49% him to ensure all final decisions go thru me. Be it repairs, financing, etc. any thoughts? Happy to share more info if needed. Lmk what y’all think. Thanks in advance

[Michael Plaks]

@Kevin Mitchell

Your description left out many critical pieces:

• I assume by "we have 6 cash flowing properties" you meant - we found 6 properties that we could buy and then rent to those "prospective tenants." If not, then please explain.
• I assume by "wants a piece of the action" you mean that neither one of you is bringing much cash to the table and plan to use your respective credits (or possibly just your father's) to secure long-term funding for these 6 properties. If not, please explain.
• No idea what you meant by "my success."
• No idea how you're planning to divide financial responsibilities for this deal.

Structuring is secondary to the business plan, so we need to start with your plan.

And I can't omit a warning that you're probably going to ignore and later regret ignoring it: don't do business with family and friends.