What would YOU do -- partnership

[Dawn Curry]

We have 15 doors right now - pretty much all of them were rehabbed prior to placing tenants. All the renovation costs came from us (either thru our own cash or financed thru a construction loan with a local bank).

A local investor has seen our success and approached us about wanting to be a 50/50 equity partner in future deals. Obviously, that would be fantastic. The investor would be the money and we would be the boots on the ground.

How would YOU structure this partnership?

I was thinking the investor would get a % from the top of the cashflow and then the remainder of the cashflow would be split 50/50. But since we are essentially the property managers, we would have to charge a fee to the LLC for that or the equity stake would change. But what would you do when renovations need to happen (I.e. new roof, heater, bathroom reno)? Where would you take that money from if there were 'insufficient funds' in the "cashflow account?"