How to structure a partnership

[Andre Delagarza]

Im looking to start a partnership with a friend. I understand thats not the best idea considering there could always be fall out, but its something we've talked about for a while and understand the risk. 

As it stands, my potential future partner has most of the money and no time, and I have the knowledge and drive. That being the case, what should the terms be? How should we divide the partnership?

[Charles Carillo]

@Andre Delagarza

I am not sure what type of properties or strategy you are focusing on; but if you are flipping properties, and one partner has most of the money; instead of partnering, maybe you purchase the property 100% in your name/LLC, and the other party comes in as a lender. It is much cleaner this way. It also clearly states the roles. You are doing everything, and they are doing nothing (other than lending). If it doesn't work out, you finish the project, sell it, and part ways. After the property sells, you have no other obligations. If you follow this scenario example, you do not need a joint LLC, partnership agreement, etc.

One of the main problems with partnerships is that one party usually does most of the work, and roles are not clearly defined.