In this case, you would draft an operating agreement that specifies each partner's role—your friend providing the cash and you handling the rehab and management—and that profits and ownership are split evenly.

Partnering with an experienced motel operator is a smart idea—it can help bridge the operational knowledge gap and mitigate risks.When evaluating motels, focus on metrics like occupancy rates, average daily rate (ADR), and revenue per available room (RevPAR).

If they try to pay their labor as 1099 they run at great risk of violating a host of draconian labor laws such as AB5, the borello law and a litany of "misclassification" laws.There are substantial differences in how "right to work" statstate as operate as opposed to "non right to work" states.SBA defines a small business based on employees and revenue size.

As for one of my other operators, I am invested into REM in 3 different deals.

My operations manager just notified me that we did in fact fund 3 out of the 4 condominium deals you brought us.

The investors must be provided a Private Placement Memorandum, subscription agreement, and operating agreement.  

@Jenny Yu sorry to hear about your experience, we own and operate 51 units we own and manage for other clients in Jacksonville and Orlando.

This isn't 2011-2013 days but many people are stuck in that time period STILL.As I finish my licensing study, I'm very grateful I chose this route as opposed to being a one trick pony.Wholesalers did themselves in by their method of operating.  

Quote from @Jesse Valdez: When operating a business, it pays to know the laws.In most states, guests staying fewer than 30 days can be removed by police for failure to pay rent or obey the rules.

If this is correct, how much are you cash flowing each month after you pay your operating expenses and make your loan payment?