Partner wants me to pay him future (potential) profits

[Austin Smith]

Hello. My partner and I are both starting out and bought a SFR to buy-and-hold. We made the mistake of getting absolutely nothing in writing. He was unable to qualify for the loan, so I took on the mortgage. Two months post-closing, I need to buy him out as I'd rather not attempt to quit claim to an LLC and put the time into documenting a structured partnership with an attorney.

These are his three demands:

1) his DP amount, plus the other expenses he has covered

2) Two years worth of would-be income

3) A share of the appreciation that has accrued since closing (two months)

I don’t have any problem with #1 above. But I want to know what you think of #2 and #3.

Purchased two months ago at $140,000 but it’s probably worth $170,000 now.