Question about a partnership structure

[Greg Larson]

Hi all,

I was working on a deal this week that unfortunately fell through due to the seller changing his mind and deciding to leave the property to his son.  

Anyway, I gained very valuable experience in negotiating with the seller and with forming a partnership where I find the deal and my partner brings in the capital.  

What my partner and I worked out initially was that I would bring the deal (which cost several thousand in marketing to find) and carry the debt in my name, and my partner would bring the capital (20% down) and a boatload of property management and rehab experience that I don't have yet. We agreed to split profits and losses 50/50.

After we discussed and agreed on the above, my partner sent a text and said he would like to add that "if we sell this asset in less than 10 years, my initial investment is returned before we split the remainder. Or if the asset should be destroyed and an insurance claim is paid"

My question is, does the clause that he wanted to add sound fair to you?  I know my partner is bringing in 20% (approximately $40k), but I'm also spending valuable time and money acquiring the deal and carrying the debt in my name indefinitely, which is worth a lot in my opinion.

Anyway, I am new to forming partnerships so am looking for experience from others who have walked this path before me.

Thanks in advance for any advice.