I hope I didn’t misunderstand what this guy was saying. - I am assuming this is one of the reasons people say real estate offers great tax benefits?

Sorry if I am misunderstanding you.

Draw it up in writing so there is no misunderstanding later on. 7.

Hey man,You misunderstand. 

I'd hate folks to misunderstand this law based on your erroneous post.And to the OP,  the Fair Housing Act speaks to advertising as well:   "When advertising housing, it is illegal to specify a preference or limitation or to alter the terms and conditions of housing based on someone’s membership in any of the protected classes." 

@Haseeb AwanGood thought, but there are two major misunderstandings in your analysis. 

Here's my attempt to try and summarize all the awesome information provided here (and make sure I'm not misunderstanding your responses):After I purchase and rehab a property, I can get my money out immediately if I find a special type of lender (e.g. portfolio lender) that allows this.

If I misunderstand the concept, please advise.

Beyond that, partnerships - even limited partnerships - do not offer much personal privacy to the partners - or asset or personal liability protection or tax advantage over other entity types for RE investing uses.So choose an entity type that prevents such misunderstandings, protects each of you from the other, protects the assets of the joint venture from tax and legal liability, removes you both personally from legal and tax liabilities of the venture, minimizes the business risk of the joint venture and each of you, and maximizes the tax advantages for both of you (through your personal business entities).The basic (appropriate) entity types for this are the: - Limited Liability Company (generally very good for holding an asset and providing it with legal and tax liability protection if done right) and the- Corporation (generally very good at operating a business and limiting their owners' personal liability to their investment in the corporation - to the limit of the value of the assets held by the corporation, though for this reason are not as good at holding assets and protecting them from risk / liability judgments as are LLCs).So the joint venture could be a corporation formed where you live and owned by your personal business entities for operating the venture with the  assets of the venture held in LLCs formed where the property they own is): - one (formed where the corporation is) to hold assets used by the corporation for the venture's business purposes which are of very low risk of causing any liability on their own (bank accounts, mortgages, investments, etc.) and - several others to hold individually EACH individual 'toxic' asset, e.g., -- the real property itself (which by its existence creates all sorts of risk and liability for the damage it may cause like slip and fall accidents, fire, etc.), -- each major group or piece of any equipment used for maintenance or enjoyment of the real property's use (which can cause injury to its operator, others, or to property), -- each vehicle owned/used by the venture (which can cause similar damage), -- etc. ...

That way if he’s putting in half the money and you’re putting in half the money it will be a fair and equitable arrangement for all parties.I would also reduce everything to writing including the worst case scenario in the event something goes badly so that there are no disagreements or misunderstandings moving forward.