Operating agreements, waterfalls, management authority, decision making authority, etc. become really important.

A typical split might then be 70-30 and then waterfall to 50-50 on returns over a certain %.

There are some sample "waterfall" models in the resources section.

In joint ventures, I typically allocate 75-80% of the returns to equity and the rest to the active manager(s).Here's our typical setup:- LLC ownership is determined by equity- The LLC operating agreement includes a waterfall such as:* First, return of capital* Second, 80% by ownership (pro rata) and 20% to managers

That said, I have many friends who are investors, restaurateurs, bar owners etc and have had great success in growing their restaurant, bar or investment portfolio by completing waterfall distribution models and attaining private lending. 

It even has a small waterfall in the back yard that the previous owner installed.

Fieldstone foundations with poorly maintained pointing - a super highway for rodents and a virtual waterfall for water intrusion.Mold/mildew as a result.Cedar post supports, which shrink a tiny bit per decade, but add up enough decades and your floors are out of level.Posts replaced with adjustable lally columns. 

-Risk - Does what you're being offered make sense given the risk of the project and where you are in the waterfall?  

You want to find out what is typical for the area and exceed that expectation if it's a cheap item to change.Maybe refacing the pool and adding a waterfall and updating the common area.Redoing or adding an exercise room.Making a small playground area or adding a basketball hoop or tennis court.It depends on the area but the little things will go a long way.Are rents per unit going up,declining,or staying flat in the area??

Investors providing capital get the majority of the profit and (in most deals) get a pref or some kind of waterfall that puts passive investors first.