Is 50-50 partnership too good for my silent partner?

[Liz Xu]

Hi There,

I found and analyzed a deal. A silent partner will provide 15% down payment. I will use my good credit to get a loan to finance the rest 85% of the purchase price. I will also do most of legwork and management of the property during a possible 10-year holding period. The surplus cash from renting out the property will pay for necessary repairs, then to pay back the silent partner's cash. He will have about 75% of the cash back at the time of selling the property. The capital gain will pay off his cash down payment first, then we split the rest 50-50.

Even though I will provide 85% of the financing of the deal and manage the property, I'm willing to give this partner 50% of the title. His name is not on the loan. Am I too generous?

Thanks!