Hi everyone - I would value any helpful input on this scenario:

I've recently utilized an approach set forth by Ali Boone in her article, "How to Best Structure a Partnership for Investing in Rental Properties". She mentions a partnership setup where a partner puts forth the required down payment. The other partner involved (who does not have the capital to provide) assumes the proper management of the property. In return for the capital contribution, the partner is given ~30% off the top of the Net Income. After that the partners split remaining Net Income 50/50.

I've presented this to a variety of sellers (more accurately their brokers) and it has been met with much interest. I have offered the seller the position as a passive partner - the property being held within an LLC or within a GP/LP relationship. My intent is to have them sell the property to the business entity (ie, me and the seller) and for the seller to provide the down payment needed from the proceeds of the original sale.

Can anyone give insight as to how to pitch this to lenders? How does closing work for a scenario like this? Would I have better luck working with the seller's bank that holds the current mortgage (ie, they know the property and seller)?

Thank you!