Help with structuring a partnership

[Adam Mittermeier]

Hey Everyone,

Recently I have been talking to a relative of mine that has real estate investments in different markets. He seemed very interested in some of the deals that I showed him that I can get in my market for buy and hold.

As far as a partnership, we talked about being 50/50 partners where he would finance and I would be acquisition. He told me now that he wants to think about it because he thinks that if there is a tenant that doesn't pay or damage them that would cut into his profits or could be a washing.

Now I have had great luck with decent tenants and minimal damage, but all buy and hold investors know that it is just going to be part of the equation. So my question to some of you seasoned investors who have been able to have partners who fund some of your deals, what structure seems to be intriguing and works great for you and the partner? The options I am considering is

1. 60/40 partnership

2. 70/30 until investment is made back, then go to 50/50

3. 50/50 and I would fit 75% of the bill for any damage.

Any other ideas that have worked well for you?