STR Ownership / Management Structure

[Shane Archer]

Hi,

My wife and I are relatively new to the RE investment space. I primarily work is as an Asset Manager/Analyst for a Healthcare REIT (3+ years) and have been studying/analyzing single/multi family, STR, MTR and loosely involved in a handful of deals along the way for longer but looking to take action with a couple money partners I have available.

What is a fair and reasonable ownership structure for someone like myself who would orchestrate and operate a STR deal in a market I understand and would source the deal with two equal money partners that would bring most (if not all) the money to the deal in a somewhat passive role for them. At some level one partner would provide some construction consulting and the other some finance/tax consulting in addition to the financing. 

Have not seen much guidance on ownership structures but my back of the napkin thought so far was: 20% me, and 40% to each partner. In addition I would assume a management fee for myself would be appropriate; I've seen 20% for some STR operators but I'd look at maybe 10%. There might be some flexibility in fee/equity, for example I might take a smaller/zero fee for a larger equity position trade off. Not confident on what is usual or fair.

Wondering from the community how others might structure this format and if my head is in the right place or if there is something else I need to think about here, thanks!