Found Investor Partner, Now What?

[Jonathan Newsome]

Long story short, I was just casually talking to a work associate about my previous investing experiences and my future plans. Just nerding out after a meeting. He unexpectedly offered to partner with me on a multi family deal ($1million+). I'm excited but not quite sure how to move for forward with the transaction. He will be providing money only (likely we will purchase a property outright, no loan). I'll put in a much smaller amount of money, but also find the property, negotiate price, manage the property management, manage any necessary upgrades, etc. How do I evaluate/price my value to this sort of deal?

[Thomas Anderson]

The best way to negotiate a partnership based on a percentage of profits. As the money comes in, you pay for the all the expenses, keep money set aside for future repairs, and then split the left over profits. If you later sell the property then you split those profits. This is a negotiated number between you and the financing partner.