How to structure a partnership w/ my brother...

[Jimmy Jefferson]

My brother and I both own a couple rentals of our own. We're looking to expand our portfolios and recently looked at a property together which would be a BRRRR deal. I found the deal, have researched the area, know what market rent would be once the place is fixed up, and have a good idea of what the ARV would be. Since the price of this deal was a little high, I decided to share the property with him and see if he would be interested in going in on it with me. He would most likely do a large part of the rehab work, as he owns a small construction company and has more flexibility in his work schedule. We both would bring money to fund the deal (most likely conventional financing). I've never partnered with anyone before so I have a ton of questions...

1) How much is my "knowledge" worth in this deal (if anything)? ie. researching the area, finding the deal, evaluating market rents, plan for the property, knowing what the ARV would be, knowing how to execute the BRRRR, etc. My brother does not know the area, so deal analysis falls on my plate. Is this knowledge worth a one time flat fee of X dollars, or worth any equity?

2) How have other people structured a partnership?  What does buying a property under a partnership look like?  

3) Have people created an LLC with their partner or just bought the property both as individual investors?

4) Any suggestions on bank financing with a partnership? 

Any info or recommendations are appreciated!  Thanks.