How to divide mortgage payments as equitable contributions?

[Nicholas Field]

I'm in a development project with someone. We bought the property together. It's his project, his name is on the mortgage and what not, but I gave the money for the down payment and it's every intention for us to do a development together. 

The property currently has a home on it. That home is being rented out. The rent goes to him and he pays the mortgage. He is saying the mortgage contributions he's been making are his equity on the project. 

I would assume the income from the property is project revenue, and not his personal revenue. 

Of course this wasn't discussed prior. This seems to obvious to me, but I would like some opinions. 

Thanks, 

[Greg Dickerson]

@Nicholas Field You can structure deals in any fashion. It's all up to you and your partner to determine what each of you are to contribute and how the profits get split.

Usually in this type of deal there would be a preferred return on the down payment which is the "equity" and then you would split the profits from any cashflow after expenses and debt service and or when you sell the property at the end of the project. The split is up to the partners to decided. There are no set rules.

You should get together with your partner and an attorney to get everything in writing before you go any further.