I think you may want to start of the arrangement in a more simple fashion.Ask for a loan in which he will get a stated return 6% to 12%.If you are both successful happy with this arrangement, upgrade to a partnership.I think a partnership off the bat makes things complicated.You will also likely make more money in a loan agreement if the project does well.

I was intrigued by the fact that you don't need a lot of money upfront to get in.

You can even get better with CDs and money market with no risk.  

We have a relationship with a much larger developer who does multifamily, mostly apartments, and even they can't figure out where to put their money right now, because the math just aint mathing for them to build or renovate at the moment.

What I can say though is that Portugal will tax your income first either by having the OTA withheld the tax from the money you get or by having you make a local tax return.

You'll have issues with selling.You'll have issues with the county if they find out.You'll have issues with insurance if there is a claim, and they will do an inspection.If it is not legal and documented, everyone will find a way to penalize you and take your money.

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Hard money loan through community bank.

So you need to remember that there are about 4- 6 big box lenders that fund most of the Hard Money loans and then you have thousands of brokers selling their products and lots of times someone thinks they are dealing with a lender but they are not, they are dealing with a broker who has a lending sounding name and this broker is set up with an account at a few different lenders. 

If you think you can buy a property in Detroit, or Cleveland for that matter, that's going to make you more money in long term appreciation than a property in Miami would, you've got to be a drunken idiot.