Bringing on a new partner

[Joseph Sherer]

Over the last 5 years we (my wife and I) have acquired 5 properties that we rent to college students. I graduate medical school in one month and will be moving 7 hours away for a 4 year residency. My business partner has been very involved in day to day operations and rehabbing while becoming more familiar with the big picture strategy of acquiring new properties. We have in place a property manager who is very familiar with college students. My question is: how do we structure future acquisitions with my partner in the mix? He has little credit or capital. So we would be using the relationship I've established with a local bank as well as our capital. I am willing to put the partner on future loans. The way I see it there are 2 pools to split: equity and cash flow? Any suggestions will be much appreciated.