How to Structure Deal with Investor

[Joshua McGinnis]

Hi Everyone. I have an investor friend who has expressed interest in investing in an income-producing property with me.

I'm finding potential properties, but I'm not sure how to structure the deal. Basically, my partner can bring to the table a lot cash - something I can't. I bring to the table finding the deal, and essentially managing the property, expenses, operations.

Here is a duplex that has the potential to break-even, if not net a little cash, from day 1: http://www.redfin.com/CA/Los-Angeles/104-N-Harper-Ave-90048/home/7093197

My question to those more experience is, say I wanted to approach my investor friend with this property, what kinds of deals could we structure such that he'd be willing to invest in acquiring the property, we both acquire interest in the property, and we each obtain some sort of gain in the long run.

I hope this makes sense. Basically, I'm trying to put together a business case. I've never used an investor before so I want to make sure I tailor a business plan towards something that is mutually beneficial to both of us.

I should also mention that he is a bit older - which could come into play with respect to how he plans to treat the investment. For instance, he may put his ownership interest in a deal under his estate so that his beneficiaries receive the benefit.

- Joshua