Partnership types for getting started ?

[Gregg Kaufman]

Hello all, new here and looking to start a partnership with a friend. Rather than a “one off” we’re considering forming an LLC (need to read up on NM LLC to avoid fees). Any other options we should consider aside from LLC? Anyone familiar with NM LLC? We’re in CA, but intend to buy out of state multi family properties. As we both intend to be actively involved, originally we were intending to split capital/work/equity 50%/50%, but recently an interested third party has shown interest in being a silent or “money guy” investor. Although this excites us for scale purposes, we’re not sure how to structure. Any experience with holistic partnerships vs one off, or inclusion of a third partner? So, if partners A and B bring in hypothetical $100k ea and do all work, partner B provides X cash and receives Y equity. Our plan is to hoard NOI or use to pay down any notes faster; therefore, not keen on pulling out monthly cash to pay down oringinal C investors cash delta. Any thoughts from you or astute readers would be greatly appreciated!j