Partnerships with Friends

[Ladd McClain]

My wife and I are teachers and over time have leveraged ourselves to several medium term rentals in the sweet spot between two hospitals. Nurses mostly. We've been self-managing for several years and have that dialed in. Unfortunately, we are tapped out for now financially but are starting to see some price drops in this neighborhood. We have partnered with one couple to go halfsies on a couple houses. 

Now to the question. We have other friends with money who have lots of cash and don't really need cash-flow. They have expressed interest in real estate as a way of putting their money somewhere safer than stocks et. We on the other hand have several kids going to college and do need cash flow. Every situation is unique, but what is a typical arrangement for a partnership where one party isn't bringing much money to the deal but is willing to do all the management, maintenance, red tape etc?