I define standard as when funds from the B-C transaction (me selling my interest in the A-B transaction to buy a property) are used to fund the A-B transaction.

Now "similar" is defined as similar size, year built, bedrooms/baths, condition, etc. 

I put 6% interest rate to define the refinance and I found a bank that does refinancing at 30 year terms. 

We each have very defined roles in the company.  

Taking the time to define these details exactly between partners, then form a contract by means of a good attorney is critical.

It's a defined process requiring seasoning so they can offer a warrantable title (that's why they sit empty so long), a BPO, an appraisal, and then it culminates in a listing.  

Listen to Quarles pod cast for a pro.When we started in the Timber business in the North west I created my own custom data base. ( pre google an lap tops just came out and Oregon has great aerials photos available to the public so this was key)We created a custom data base that had every none commercial timber property of over 10 acres that had observable timber on it. this from the CA border to just south of SEattle about 20,000 properties it took almost 2 years.. we then hammered that data base and it took an average of 7 to 15 touch's before we landed a deal and even with all of this a great year for us was 50 transactions.. out of all those refined and defined leads.

If he is truly a passive investor and simply wants to invest the money for a share of future profits, then define that relationship clearly and set expectations for what each persons involvement is, and how frequently you should discuss things.

Jay has amazing character and integrity.

There are "grey" strategies to fit things into expense instead, like using dollar limits to define generally expensed items vs amortized items.