@Kevin Hoover, with certain types of entities it is possible to contribute property to and distribute property from that entity without triggering a tax event. 

If you're not putting anything in, then I'd expect that your friend would want to get all of their capital back before you start splitting up the distributions.

Consistent distributions for class A and Class B should start before the end of the year.

The client can distribute proceeds through a private agreement without involving the title.

Then the remaining profits get distributed at whatever split you both agree to...I often see it start at 25/75 (75 to the person in your position) and then maybe increase it to 40/60 or 50/50.It would really help if you could provide some numbers on your deal. 

I understand your frustration with the current freeze on redemptions/distributions.

Any paused distributions?

And then also do you typically repay each partner their upfront costs from the profits before then distributing profits?

With less experienced or just poor planning operators, it isn't uncommon that they spend years distributing all the cash out to the owners, and then the time comes for a multi million dollar refresh to maintain the hotel brand, and no one wants to cough up the money back into the entity.

There are actually THREE kinds of subject to transactions1- subject to existing mortgage without lender approval2- subject to existing mortgage WITH lender approval3- subject to existing mortgage as part of a seller financed wrap around mortgage.with #1 and #3 it’s in everyone’s interest to utilize a third party servicer, who collects and then distributes payments.