Setting up sweat equity partnership for first time

[Chris Momongan]

I've recently moved to Augusta from Atlanta and have made friends with someone that has noticed my real estate investing and has capital. I am looking to set up a partnership with him with the aim of being a 50-50 sweat equity partner. I've recently did my first BRRRR and currently manage it as a MTR. I'm about to start another project by myself and focus on smaller SFHs that I hold and rent as MTR. I would use the partnership to get into Multi-family properties. We are having our first business dinner to discuss our goals and also have scheduled a meeting with attorney to discuss article of organization and set up next week.

My goal is to define my role as the person that finds the deal, manage the rehab, lineup financing for rehab/purchase, furnish property, line up refi, manage for a 20-30%.  The partner is responsible for the capital to fund down payment for financing property, holding costs, and any overrun cost in project.  The deals I'm look for are BRRRRs  where they would get all their initial money back at refi and if there is any money left in deal after refi, all cash flow would go towards them until made whole.  After the we would split cash flow 50/50.  

Can anyone advise a first timer looking to set up a partnership.  Pro/Cons, things to look out for, and what to ask at consultation with attorney.  Share any experiences good and bad please.  Thanks!

[Account Closed]

Quote from @Chris Momongan:

I've recently moved to Augusta from Atlanta and have made friends with someone that has noticed my real estate investing and has capital. I am looking to set up a partnership with him with the aim of being a 50-50 sweat equity partner. I've recently did my first BRRRR and currently manage it as a MTR. I'm about to start another project by myself and focus on smaller SFHs that I hold and rent as MTR. I would use the partnership to get into Multi-family properties. We are having our first business dinner to discuss our goals and also have scheduled a meeting with attorney to discuss article of organization and set up next week.

My goal is to define my role as the person that finds the deal, manage the rehab, lineup financing for rehab/purchase, furnish property, line up refi, manage for a 20-30%.  The partner is responsible for the capital to fund down payment for financing property, holding costs, and any overrun cost in project.  The deals I'm look for are BRRRRs  where they would get all their initial money back at refi and if there is any money left in deal after refi, all cash flow would go towards them until made whole.  After the we would split cash flow 50/50.  

Can anyone advise a first timer looking to set up a partnership.  Pro/Cons, things to look out for, and what to ask at consultation with attorney.  Share any experiences good and bad please.  Thanks!

Some quick tips:
Don't do a Partnership, do a Joint Venture (explained elsewhere, different post)
Splitting profit 50/50 is fine but split ownership 51/49. Someone has to be able to make decisons when there is a disagreement.

Enjoy the process. If it's stressful, find another way to do things.