Capital investor for STR

[Kristin Drumheller]

I have a good friend looking to invest some capital in real estate. We currently have a couple units in different asset classes that are doing well so he’s looking to get involved.

We are bringing the deal and handling management and looking for a fair way split DP and profits from a STR here locally. I have seen other similar posts that recommend they bring the entirety of the down payment and the profits are split 50/50 from there.

My original thought is 60/40 split on down payment (him bringing the majority), 50/50 ownership, we take a 20% management fee, and all other profits are split 50/50. Does this seem reasonable?