From commission splits to leads, to how the train and help.

For instance, I thought their upfront fee is high but have been told that is reasonable.what is upfront fee...to source, due-diligence etc- (7%)what is your operating fee through the life of the asset. (0.5%)what is hurdle rate and split after hurdle rate- (10% and then 50-50 split of profits)do you have downside protection- (what does this mean?)

Just guessing the numbers.If we put down $400,000 together with an interest rate of 7% (it could be higher), then im guessing the monthly mortgage with insurance and tax would be around $3,886.If each unit rents for $1,500/month: Total Monthly Rental Income: 1 , 500 × 4 = 1,500×4=6,000 Monthly Expenses: Mortgage (PITI): $3,886 Maintenance/Repairs: $500 Property Management: $600 (10% of rent) Vacancy Reserve: $300 (5% of rent) Total Monthly Expenses: 3,886+500 + 600 +300 = $5,286 Monthly Cash Flow: 6,000−5,286 = $714We split the profit in half so each person takes $357 a month..How much should we be profiting from this in order to make it attractive to jump in? 

This led me to having lunch with a warehouse developer not too long ago.

In the more suburban areas of the City towards the County line, you may find smaller duplexes or 1930s craftsman/bungalows that are split into 2-3 units in areas where the values are much more affordable, but also not in the City center.

Could I just come in do the brush up and furnish on my own dime, and partner with them to split the profits? 

She can still own the home, but also tap in equity if there needs to be a partnership split. 

Seems interesting run a split test see if it works out for you.

Over lunch, I asked him how he stands out in such a crowded field. 

My first STR, and plan on splitting between self use and renting to help offset costs.