Hi @Mark S. each fund is different in structure, some are preferred return only, some are profit split, some are a hybrid, some are debt only, depends on the fund and the sponsor.

With no structures, there's little to damage and it's not like a defaulting tenant can steal it. 

Bossier partner managed property and repairs while we managed business structure and banking account setup.

To structure a partnership, consider forming an LLC where you handle property management, renovations, and operations, while the investor provides the down payment.

Our goal is to establish a structure where the property owner can secure financing based on the long-term lease with the operational company.Any advice or insights from those who have navigated similar situations would be greatly appreciated!

I see SO many properties in the upper midwest that have ample yards or even existing structures like carriage houses and detached garages yet prohibit ADUs.

Our 8-unit buildings have one roof, one foundation, and one structure to take care of.

We had a structural engineer evaluate and he recommended installation of piers to stabilize the foundation.  

This includes structural components of the building.

There is fine line between the two depending on the structure and source of the capital.My preferred equity partners do quite a bit of due diligence on the sponsor as they are essentially teaming up with them to do this deal.