How to structure a partnership

[Kat Hughes]

Hi!

I am looking to do a partnership with a friend from out of state.  We are both very committed and have the same values and we think it's a good match.  We've gone to a lawyer and basically the lawyer just told us that we can put whatever terms we want on the operating agreement and that it's up to us how we want to structure the partnership.  We know so many people do this so we'd like to get some feedback from anyone who's done it before. 

The scenario is that he's got some capital money and I do too.  I'm able to put in 100% for the purchase price and rehab cost but we're investing in his state.  So he'd be the one overseeing the work and managing the process as well as getting it rented and managing the ongoing rental after that.  What would be a good structure for this partnership?  My initial thoughts are that it would be 70/30 or 60/40.  He get the 70 or the 60 and I get the 40/30.  Simply because all I'm doing is putting the money in but he's doing all the sweat equity which in my mind is a lot harder.  If not, what other ideas would you guys have for structuring the partnership?

Thank you in advance for any feedback!