Rental / Managing Partnership Structuring Question
I was looking for come creative ideas here. I have a friend who is buying a 200k townhouse pre-construction and he wants me to manage the rental aspects. It may or may not cash flow but he doesn’t care; he’s looking at this investment more for building wealth (it’s on a 15yr loan). Since it may not cash flow I was thinking about getting a certain amount of equity for my efforts but I’m not sure how to go about creating a deal like this.
Any ideas about developing scenario where I get some equity in exchange for managing? So far my seminar materials don’t have a situation like this.
Thanks,
Mike
I would recomend the use of an LLC with specific language to provided for the vesting of your interest. Alternatively, you could draw up an option for the LLC interest.
Respectfully,
Clint Coons, Esq.
Since he doesn't care if it cash flows come up with fee where you would be happy to manage the property. Let him pay it whether the property cash flows or not.
But, manageing property you do not own may be one of those activities which requires a real estate license in your state-- check.