STR Partnership Structure - Feedback

[Francisco Ruiz]

We own 2 STRs (TN and VA) and are in partnerships in 2 others (VA and OK). We have learned with each deal and each property about the analysis, design, setup and managment of STR's. Our last partnership was with semi active partners, but we still carried a good portion of the weight, and we realize that we are looking for more of passive partnerships with us handling the bulk of work. The structure we are looking to move towards would be 50/50, with other partners providing the cash for initial funding, we would provide all the services (analysis of markets/properties, setting up of LLC's, design, sourcing of all furnishing and essentials, setup, creating of listing, managment of property). These items would have a value of $x, which would go towards our 50% stake, we would also charge a reduced managment fee and reduced profit share until full 50% is met.

Like to get thoughts and input from others who have experience with similar type partnerships to ensure we are thinking about this correctly and point out any items we should consider, any risks from our side or partners we need to address, and any other ideas or suggestions.