Partnership or co-investor questions
Hi everyone!
Are there any rules of thumb of how to establish a partnership with somebody to get the needed sum for down?
I'll try to explain on an example:
Suppose I'm interested in commercial rental building. The asking price is 1.2M.
I no way have the necessary 20% down. Lets say I have 100K maximum.
I have a fiend whom I 100% trust and who trusts me also. I would like to persuade him to become a co-investor in this building.
I plan to take care of the building myself, everything I need from him is money necessary for downpayment.
What are (if any) usual terms of such partnership? If I provide 5% of down and he provides the other 15% (proportion 1:3) but I'll do all the job to run this property is it still normal to be 50-50 partners in this enterprise?
Or, is such partnership terms depend only in invested down money ratio no matter who does what?
I understand that the truth is somewhere in between, would you guys advise?