I have the deals friends have the credit: how do i structure

[N/A N/A]

what would you do? i have the deals my friends have the credit and collateral, how do i structure the deal for a win win situation for us.
the first property is an investment property.

[Jeff Takle]

You may want to consider who will manage the property and make decisions about when to sell, trade up, etc. If the money person is only bringing money, then I'd lay out all of the requirements for the property expected in a list and designate which of you will do what. For example:

Closing on Purchase: ME
Cash down payment: YOU
Find tenants: ME
Screen tenants: ME
Prepare and sign leases and other dox: ME
Manage property (maintenance, escrows, rent collection): ME
Decide to sell: BOTH OF US
List property and conduct closing at sale: ME
...

From this you can better understand and justify an equity split. Another thing to do is closely review the financial forecasts for the property. Anyone putting money into a deal is going to want to get...let's say 15%+ annual returns...so after you forecast, figure out total returns and then find out what's left after you provide 15% cash-on-cash return to the investor: that's essentially what you can keep. It may or may not make sense for either or both of you after doing that analysis. But, if total returns are 17% and the investor needs 15%, then your cut by default is 2% and you have your equity split (15:2)

Keep in mind that if you're providing property management and listing services, that you should list those services on your financial forecasts at market value -- if that's money coming to you, then it's part of your personal return on the investment.

You may wish to establish an LLC where you are a GENERAL partner and the investor is a LIMITED partner - you would retain all voting rights except for special circumstances like when to sell, or to dissolve the company. If the investor puts the down payment into the LLC at formation, you can buy the property directly with the LLC (bank will require personal guarantees) and that gives you *some* liability protection, voting control over daily operations, and saves a step over the above process. Down side is that banks will charge you higher interest for mortgage. If all cash purchase, you could just use LLC directly too.

Don't forget to get an excellent, high coverage insurance policy on the property. It's relatively cheap.