how to structure a partnership?

[Steve T.]

Hi, I am new here and am just learning about real estate before beginning. I was/am a university professor and although a lot of people think that is a prestigious job, it pays terribly. After many years, I make only a little more than unionized grocery store cashiers, and if I quit now, my pension would amount to $900. I need a better plan than just work for another 20 years. Students and the educational system have changed to be more about entertainment than learning and I dont think Ill want to keep going that long. Thats the backstory.

I have a very wealthy lifelong friend, someone who would gladly go into business with me, and who I know would write me a check for as much money as I ever needed, no questions asked, and never even want it back. But I dont even like it when he pays for dinner, so I would never do this. I would only do this if I can figure out a way to make it equally profitable for each of us. So I have some questions about if there is a good way to do this.

I would probably want him to have the house in his name since the tax benefits for him would be more substantial with his much larger salaries. For me, wanting to retire earlier, cash flow is more important than a huge windfall in ten years. He doesnt really need either so I dont think he would care how it was structured. I was initially thinking we could split the down payment, he would gain all the tax benefits and maybe pay the property taxes and insurance. I would cover the management or the payment of a property manager, and maybe the costs of minor things, say less than $1000. Then I would pay the mortgage payments, gaining from any additional rent I could get, but also covering vacant months between tenants. Then when we sell the house, he would keep all the appreciated value.

I dont know, is this fair to him? to me? Is there another way of structuring it? If he gets the big payoff in the end, should he cover the full downpayment? Or actually, do you even think its a good idea to go into business with a very close friend? Any advice would be greatly appreciated. FYI, I live in Austin, and am thinking about duplexes and triplexes, although I am not averse to investing in other markets or other types of property.

Thanks.