How do I profit from my efforts in a partnership / syndication?

[Chad Abbey]

I have a good friend of many years, former client, and partner in two syndicated deals who wants me to locate property, negotiate deals, and oversee the operation of a proposed joint venture but I need to make it worth my time while providing solid value to him as well.  I don't want to charge commissions on the purchase price of the 5 - 10 single family homes he wants to purchase with me in partnership as I will be 50% owner in this new company.  I don't want to take what would be  capital gains and turn them into ordinary income but I would like to profit from the value I expect to find in these deals.  I don't need his money at this time but I want to increase our business relationship and as I grow I believe he will be an important piece of my real estate career.  I have an idea of how to equitably compensate myself but would like to hear from others who have already crossed this bridge?