Setting up a rental portfolio business

[Benjamin Haberman]

Hello BP community,

I currently have a friend who wants to invest in SF rental properties. After explaining the cash flow some of these properties have in this certain area, he couldn't believe it. He asked me to draw up a partnership agreement with the companies goals. So I am currently working on it. 

Details:

Our target price ALL IN is $50k. At this number the home will be rent ready.

Look to acquire 5-10 properties every year. 

The potential partner will ONLY be contributing finances. He also has knowledge on real estate but won't have any hands on what so ever. I will handle the operations on the front end as well as the back. He will make it possible to offer cash and then put up the cash to rehab. He has a large amount of cash so will make it possible to set up a system to aquire/rehab/rent a large amount of properties

I am also considering another partner who lives close by to this area that can make the rehab process happen so much quicker. He is skilled in construction and is just good at getting these projects done. He has the resources and owns one of the biggest plumbing companies around.

What do I bring to the table? I am the realtor. I am the one finding the deals. I am the one doing all of the books on the back end,dealing with phone calls, etc...

My thoughts now are this:

Offer financial partner 6% amortized  over a 30 yr period(on all money loaned for acquisition/rehab) with 25% equity? I put question mark because I am curious to know your thoughts on this.

Construction partner- 37.5%

Myself -37.5%

Questions:

Would you set this company up as a holdings company? With each new property being a new llc? That would seem to be a paper work/confusing nightmare.

What do you feel would be the best structure for this business? This is a scenario where I have the resources, I just want it to all make sense; obviously.

Thanks in advance!

Ben Haberman