Buy and Hold partnership with one partner bringing most of the $?

[Nick Rivers]

I'm an agent and newbie investor with a couple units. I have a friend who has a lot of money and wants to get into investing and open to partnering with me and bringing most of the capital.  I'd love to source a deal for a multi and start developing a portfolio with him but I just don't know where to begin even structuring the partnership.   If he brings the majority of the cash to the deal and we purchase a multi family that cash flows right away how would that break down? Is that money split evenly? Does he just recoup his initial investment when we sell way down the line and then we split it the rest?  If anyone knows a good place to go to read about structuring these different types of partnerships I'd really appreciate it.

[Seth Ferguson]

@Esther Ade

I frequently see investors work with a capital partner and give too much away in their split, as if the capital is more important than the sourcing and operation of the property.

Bringing the capital is only half of the equation. The skill of acquiring and operating the property is just as, if not more, important.