Partnering with a friend on a commercial property

[John Coffman]

Hi BP friends! My wife and I have mainly done long term buy and hold over the last 12 years of our investing career and have an opportunity to partner on a small scale with a friend who is purchasing a commercial building they are leasing currently for a different business they operate. The price is $4.2 mil for the building and the down payment is $840k. We would probably be putting $100k in and getting a 2.4% ownership in the building but we haven’t done anything like this before and are wondering how a deal like this should be structured for returns? Would it typically be just an equity play or would one expect to get a percentage of the monthly income as well? 
Thanks for your input!