Thoughts on partnership structure and pay out. So I looked through the number of old post on partnerships. 

 They were typically started by people that were broke, new and looking for some sort of ride on somebody else’s dollars. I hope this post is not one of those.

I am not new and I do not have to do another real estate deal in the foreseeable future to be able to pay my bills. :-)

So I had someone call me up and was saying they’re coming into money and know that I’ve been doing real estate and was wanting  to work with me, but he was not very familiar with real estate.  

My my goals are buying cash flowing rentals.   I would be able to get investment  loans and I could spread this person‘s money out over a number of down payments so for all practical purposes they are only coming up with a small amount of the overall purchase price,  because I would be the one getting the loans and signing the loan. I also would be the one that would manage and oversee any rehab if there is any. I also would be the one that would either manage the property or manage the property managers so basically the partner would be a passive investor except fronting the down payments and any rehab cost if there was any needed.  Of course there loan products that could probably roll the rehab into the rehab loan and the I could refinance into a long term loan product after it is rented. 
 
My concern is owning properties long-term with other people what happens down the road? How would I structure this? Would I do an LLC for a handful of properties or a LLC for each property? How would we be able to unwind the deal if they wanted to get out of the deal or is there a way that I could pay them their down payment back with interest in the event they became a less than ideal partner.?

What kind of split 50/50, 60/40. I realize that it would be simpler for me simply to offer a higher than market interest-rate however it appears this person is wanting to own real estate more than just getting a good return from interest. Anyone that has ever done something like this I would sure be ears to to hear:)

Thanks in advance