Advice for opportunity

[Tom Murphy]

Hi all,

I'm looking for opinions and advice.

I was recently approached about becoming an investor in some properties. I have never owned a home or participated in any real estate ventures. I am a W-2 employee who makes a healthy Salary. I have no interest in being a hands on landlord.

The deal that was presented to me is that I would provide the down payments on the properties and responsibility for the mortgage. (approximately 30-60k down payments per property, the value of the properties between 130-160k) I would be the sole owner of the LLC that would be formed. I would also be the only one on the deed for the house.

A contractual agreement would be formed between myself and the property management group outside of the LLC. I would receive free property management. I will receive 2/3 of profits until my initial costs are recouped. (Down payment, closing costs etc) After that the profits will be split 50/50. With exception to the initial down payments all costs for the properties will be split 50/50.

I'm trying to determine if this deal is advantageous for me or would it be better to pay the 10% property management fees plus 50% of first months rents on new leases and possible other fees. (I have not seen the property management agreement yet.)