Structuring STR Partnerships

[Mike De Lota]

My wife and I found a partner for an STR who is willing to to pay down payment, decor and rehab costs, while we would secure traditional financing (jumbo loan at a competitive rate), build a team in our vacation market, and potentially self manage. How would you structure the payouts in this partnership? With the increased debt:income and leg work we are incurring, somehow 50/50 seems skewed in their favor.... To be clear, he is not a private lender, he would like an ownership stake in the property. He has non-traditional income and has been denied loans by multiple banks/lenders.