Question about Separate State Partnerships

[Dustin Roy]

Long time podcast listener, first time poster! Will fill out my profile once my wife helps me take a suitable picture. 

Context - I'm wondering if anyone in the community has experience with cross-state partnerships in real-estate investing. I have a single property in Denver, CO, but I want to scale faster and so I'm partnering up with a friend in Texas (I've known him for 20 years) to form a partnership and share in the expenses and profits.

Question - We especially like the math in an area in TX, coincidentally near where my business partner lives. We'd like to invest there, but I'm wondering how we will handle the "trouble calls" from tenants, because we don't plan on outsourcing to a property management company (though I am open to this idea). Since my business partner is closer, should we direct all tenant calls to him and then give him a bigger slice of profits? Does anyone in the community have experience or advice on how we should structure the partnership? I'm looking for a win-win, and I'm open to making less of the profits if I'm doing less work as an out-of-state passive investor. Seeking advice / general thoughts / any feedback. 

Thanks everyone! 

 

[Mike Wadsley]

My business partners split things based upon the amount of capital invested and then reimburse one another for work done. Since we do it that way, it's about the same money to farm out to a property manager and then none of us have to take a call at 3AM because the toilet is flooding the basement while we're on vacation.