We have structured lots of different partnerships this way... but it is always transactional because as others have mentioned, people in relationships for years can still end badly.

I'll throw it out there as an option, knowing that no one is really going to take it.Your proposed transaction is low leverage, so very good terms should be available, but FDRs New Deal in the 1930s (which created the kid-friendly home loan ecosystem -- home loans commonly had 10 year balloon payments before that, even if you put 50% down) was only for homes, not for CRE.

Landlords are liable for whomever is in their property and PM are agents thus require the same fiduciary relationship as in any other real estate transaction.  

However, they don't have a credit history and mentioned they use cash for transactions, offering to pay one year's rent upfront in cash.

Sounds like you will need a short term hard money lender for this transaction and a JV partner for the downpayment.

Hey Carlo, It will depend on the LTV, FICO, PPP, and transaction type.

The argument was akin to saying we needed to call county clerks to confirm escrow attorney recorded our transaction when that's what we actually pay them to do in the first place. 

In terms of getting into apartment complexes and large transactions - it's much easier than you think.Real estate is filled with opportunities to deploy capital, but in the same time is filled with fast-talking snake oil men that will happily take your money towards a "fund" so you own a portion of a large portfolio... only to find out the fund's performance is below par, your money is locked out, and the only person making money is the fund manager from the management fee they've locked you into. 

Once the transaction is done, I transfer my property to an LLC (on its own) and sleep good at night that any liability that happens will remain within that LLC.

I will ultimately spend $35,000-$40,000 more on finance charges when looking at the total picture (not paying the $50,000+ pre-payment penalty) but was able to complete the transaction with $320,000 less equity.