Contractor/Investor LLC Structure

[Brian Hernon]

Hello fellow BP members,

I manage a contracting company that employs a large number of carpenters (finish work, roofing, siding, demo), plumbers, HVAC, electricians, solar installers, masons, caretakers and property management, and more. I'm in discussions with private investor(s) to form an LLC where I will find local opportunities, investor(s) will supply cash, and I will renovate and manage the rentals and property sales. The idea is not a hard money approach, but a "partnership" where I am the boots on the ground and the investor finances the process and our LLC holds the properties so everyone has a share in the continued future growth in value of the holdings. Does any one have any pros and cons to this type of arrangement, ideas of what works and doesn't, how to determine % of value of LLC based on effort and value of each party, etc. What about long term exit strategies? Thank you for your input.