Structuring a partnership

[Robert Gibbs]

Hey guys! Any tips or advice for partnerships? How to structure the deal? Should I give up both cash flow and equity or just equity? Should I 50/50 split or 60/40? Anything helps! Thanks! 

[Brett Deas]

For me it would highly depend on the property itself. Almost always you have to have some split of cashflow and equity but it depends on what the other person wants as well. For example:

My first deal I had an equal 50/50 everything partnership going into it but then later found out they didn't care about the cashflow and only the appreciation. So we changed the structure to where I got more of the cashflow but then they put whatever cashflow split they had into principle payments so when we exited the place they got more appreciation because of those payments.