Split profit or pay interest, how to structure a partnership

[Paul Bowers]

I have a friend who has some available cash. He is aware I have been starting my journey with real estate and has expressed some interest in possibly partnering on a deal. He has two young children, full time job, etc. and is basically just looking to provide cash and have me handle the flip. My question is how should I approach the partnership. Should I let him fund it completely, I do the work and split the profits or should I just treat him as a HML and offer to pay interest to use his money? How do you decide which avenue you want to pursue when talking with potential partners?