Advice on partnering on first deal (primary residence)

[Antonia Powell]

Hi all,

I am a newly divorced mom living in a very high cost of living area (near Boston) really interested in getting into real estate investing but with limited resources. At this point I am trying to get into a primary residence that I could sell or rent out after my children graduate high school (~9 years). The market in my city is VERY expensive but I am tied to this location for personal reasons. It will be a struggle to find a small house I can afford on my own, even though I am a relatively high earner with a stable job. I am considering partnering with a family friend (real estate agent) who wants to help me get into a house and is also looking for investment opportunities. We have identified a possible house and are talking about how to structure the partnership. The idea is go 50/50 on the down payment and any improvements to the property (likely kitchen and bath upgrades). We would share monthly mortgage/insurance/taxes payments, but since I will be living in the house, I'm thinking a 70/30 split would be fair. Upon sale or move out, we would share sale proceeds or rental income 50/50. 

Many questions: What kind of legal agreement would you recommend to lay all this out and ensure a fair and transparent agreement? Does the 70/30 split sound reasonable given that my children and I will be living in the house? For the down payment, this partner has a lot of cash on hand. How can I bring that to the table in a way that the lender will feel comfortable with? I am definitely planning to consult with real estate attorneys and lenders on all the details but would really appreciate responses to these questions or any other guidance from this experienced community. Thank you so much!