What are the different ways to partner with someone?

[Jonathan Newman]

I'm not sure if this question fits one of the existing forums. Moderators, please address appropriately.

I have five rental houses that I bought with my own cash and credit. I recently met a doctor who is interested in "getting into real estate". I would like to know some of the ways to partner on real estate. He is interested in the same types of deals that I am -- Buy and hold (rent) real estate, with possible lease options on the back end.

I told him that there is a range of options, from him buying the property outright (with a wholesale fee to me), all the way to me buying the property (with a mortgage held by him). He said that he is looking for something with more risk than just writing mortgages. I take that to mean he is looking for more upside than just 10% interest.

My realtor (c) said that if the investor put up 100% of purchase and rehab costs, that we should split profits (cash flow and equity upon sale) 40% to him and 60% to me.

How does that compare to the other partnership agreements out there?

Thanks,
Jonathan