Partnerships on a Multi-Family

[Chauncy Gray]

Hello,

When two investors form a partnership in which one investor analyzes and brings the deal (for example, on a multi-family unit) and the other investor finances the deal, what are some ways in which the investor who finances the deal recovers his or her initial investment (down payment)? The assumption is that the deal would produce a great ROI and that the investors split the monthly cashflows (50-50, 60-40, etc).

For those who have done partnerships or have recently closed on a deal through a partnership, what was your experience? Would you mind sharing any recommendations or advice for an investor who is looking for another investor to finance a potential deal on a multi-family unit? 

Chauncy