Bringing value to a partnership

[Peter Vroom]

Good morning collective brain.  New to BP and currently groking the books and podcasts. 

I want help with some perspective on how this partnership would best work please.  

Say I want to partner with someone to buy a multi for $400k and after all expenses there's $800 pm positive cash flow.  I'm bringing the 20% cash down but no credit rating /external cash flow and they are bringing a credit rating and full time job - ie the loan.  Neither can do it alone.  

What is a fair way to set up the partnership? The split? 

If I could also secure a loan and go alone I would get my $9600 cash pa which is 12% on the $80k I put in.  

However, the partner is bringing $320k via a loan.  

One option would be to have them be like a bank.  Eg they borrow at 4% and receive say 7% giving them a profit of 3% for no money down but a little time for the loan app plus the risk associated with repaying the loan if it goes belly up - though with 20% of my cash down the risk is low for them.  so it's easy money for no effort but some risk. Does that reduce their borrowing capacity for future opportunities? 

Another way I've looked at it is we split the net income after expenses before loan repayment 80/20 and they get 80% and pay the full mortgage out of it.  But then there is saved mortgage insurance because I brought the 20% cash but they are getting the advantage of it.  With this I think I would only get 6.6% return on my $80k. Is that simply a price I have to pay for not having borrowing capacity?  

Can it work if we pay the mortgage 50/50 and then split the profit 50/50? The question is really, would one partner start to feel that is unfair over time? Is it sustainable? 

Again this returns only 6%  

One issue for me is with that cash tied up it can't be used on future opportunities, eg a flip.  

This kind of thing has been done a million times, what are the best ways to approach it please?