Partnering with a Private Investor

[Evan Yates]

Hello all,

I'm looking for some advice on how to structure a new partnership. We have known each other for 15 years and worked together on multiple other businesses, so there's no problem there. Here are the details:

My business partner in this new real estate venture will be providing 100% of the capital, whereas I have the "know how", connections, etc. We'll be buying multiple properties and keeping most as long-term rentals and flipping some as well.

Unlike a normal private money lender that injects capital and wants it back in 6-24 months with a return, he wants to stay in it for the long haul as I do. With that in mind, what exactly could be my pitch to him on how we should form this partnership? Should I form another company outside of my current LLC with him? Should I bring him into mine? How do I make it worth it for both of us? Any insight would be greatly appreciated!