Thoughts on how to structure this deal?!

[Elijah VanDenBerg]

I'm curious to hear how other investors would structure this deal/partnership...

Investor "Bob" finds the deal ($2M), negotiates the deal, completes all due diligence site visits, inspections, walkthroughs..etc. Bob also secures lender and financing. Bob is an experienced investor. Bob funds 50% of the down payment. 

Investor "Jim" is a very high net worth ($50M+) individual with a network of other very high net worth individuals ($100M+) and funds 50% of the down payment. Jim takes on a 100% passive role. 

What would be the appropriate equity split or compensation structure for Bob? 

[Jeff Copeland]

There's no single right answer to this question. It's completely negotiable between you and Jim, and depends on a lot of factors. 

That being said, I would not expect "Bob" to have a massive preferential return or increased equity spit in this scenario. 

My advice would be to not get wrapped up in the details of this single (presumably first?) deal with Jim. 

Instead, focus on making it a home run and play the long game: 50% of this deal (+ building a relationship with Jim for multiple future deals) could put millions in your pocket over the next 5 to 50 years, and is almost certainly better than 100% of nothing. 

To answer your question more specifically: One simple way to structure it is with an LLC with the two of you as members, and perhaps with you as the managing member (so you can sign for the LLC, commit funds, buy and sell assets, etc). Your LLC docs, particularly your operating agreement, will specify equity splits, profit splits, distribution timelines, holding periods, etc.