STRUCTURING AN EQUITY INVESTOR

[Shannon Smith]

I have one STR myself and looking into another - I have an investor who wants to put up the 20%-25% down payment and have an equity stake. Now this same investor also wants to be a silent partner in terms of the management and running of the STR. He wants to give the money to start this business and then collect ROI on the cash flow. He would be putting up the initial cash to purchase and I'd be doing all the work to make it successsful. Would anyone be willing to give advice on how the equity percentages would be structured? Should the house be in both of our names? I'm excited to have an investor and no personal money OOP up front but I need to make sure the equity is fair given I'll be doing the long term heavy lifting to bring in the cashflow and success. Any advice would be helpful. Thank you.