Partnership - How to structure

[Tarcizio Goncalves]

Hi everyone,

I've been on bigger pockets for about a month now reading and learning about real estate investment. I wanted to ask the community questions about building my team and hopefully get some help. 

Scenario: I live in Massachusetts and am working to relocate to South Florida in 5 years max. I have some cash to invest in real estate. I have a good friend that is like a brother to me and he lives in South Florida. He is a really good carpenter and has his own business. The problem is that he doesn't have nearly the amount of cash that I have to invest in RE. 

Questions:

Do investors start a partnership without the other party having money to go in half and half on the deal?

If so, how do you structure the deal? How do you slit the profits? 

I am planning on buying rental properties (duplexes, triplexes, and fourplexes) in South Florida.  Should I just buy the properties and pay him to rehab/work on it for me? 

Investors, what would you do in my situation?

Thank you so much for your time and wisdom

[Luke H.]

Hello,

1) Yes, you can start a partnership without the other person having money.
2) You structure the deal any way you want.
3)That might be the best/easiest way to go.
4)I have 2 different partnerships and have rental property solo.  If you do a partnership make it very clear/put on paper what that partnership looks like.  Details...for example, (If plumbing breaks you will be responsible to go out and fix it or hire someone).  This happened to me at Thanksgiving weekend. I made it clear on the second partnership, guy really wanted to work with me, that he would do most of the work (I'm guidance). 
In business people can be a partner with what is called 'sweat equity'.  Meaning, for every hour they work, a certain amount goes towards their ownership part.
The golden rule of business is "He who has the gold makes the rules", so you can leverage that when deciding on percentages in partnership. I don't suggest you over do it because you want him to feel like a "equal" even if he isn't on paper.
In this situation I would just pay him to do the work. After you get 1 rented, give him the option to put a small investment for a small ownership/return. That way you get cash you can use for another deal and he has 'ownership' and most likely fix any issues quickly.

I could go on and on, but anyways, hope this helps
:)