Equity partner or loan?

[Michael Bruesch]

Hello all,

I'm going into a partnership with friend on a duplex. He is coming in with the down payment but doesn't want his name on the loan so I am essentially raising the funds with the promise of the equity split when we do a cash out refi. He will only be taking his cut after the refi and not on monthly payments with interest. 

After talking with an attorney, I was told this would be treated more like a loan rather than a partnership. Can any one else provide some guidance here on what kind of agreement this would be and how to keep moving forward with this deal? Thanks!

Mike