Looking for advice on partnership structure

[Brett Holmes]

Hello all, I am needing some advice on a partnership structure that I was just presented with. The potential partner here is a local wholesaler/agent and he is bringing the deal. This means I am bringing the money, which is coming from a HELOC on my primary residence. The intention is to buy the property, all cash, for $32,000 and refinance, pulling the $32,000 back out. What he has proposed is setting up the partnership where equity will be split 60/40, with him getting the 60%, but splitting cash flow 50/50. He will be in charge of managing the property, where my role will be more hands off.

With this being my first real estate deal, I am looking for any advise that you all may have.  Is a 40% equity stake normal, or a good or bad deal?  What are some tips or pointers to look out for?  Since I am the money man, what happens if something falls through with the refi or we run into a money issue early on?  Is it all on me and how do I protect myself?

Thanks in advance for any input on this topic.