How to Structure A Partnership With Another Wholesaler

[Michael Williams]

One of my wholesaler friends approached me last week to go half with him on Ernest money for a house that is in one of the most sought after areas in Atlanta. This will be a tear-down and rebuild in an area with 5 rebuilds on each street. He and I have talked about working together on a deal for a while. He said if I go half with him on the Ernest money I will get half of the wholesale deal. We have an LLC but he doesn't. He has the contract but he knows that I can find the developer to buy the property. This is how we are looking at structuring the deal.
He brings a contract from his attorney stating that this is a one time deal contract with our LLC for this property. This is to assure him that when we find the buyer and the check is written to our LLC he will get his split.
We then will draw up a general partnership/limited partnership agreement with him for this property. He will then turn over his half of the Ernest money to our LLC to place with the sellers accountant in escrow. I will then put my marketing genius to work.

This is my first co-wholesale deal and I would love some feedback. What am I missing and how would you, or have you structured something like this? I want to get this right because there are plenty more opportunities for houses like this with this guy.