It kind of gives them skin in the game.

Jennifer - I'm looking a multifamily properties in PA and have also put a few offers in NJ - I think their is still a gap between seller expectations and buyers, so I'm experiencing similar dynamics.

Let's build bridges, forge new connections, and help one another succeed in this dynamic world of real estate.With utmost humility and eagerness,Sean CliffordA Rookie Real Estate Investor

I will layout the scenario and any thoughts or previous experience for similar situations would be appreciated.My contribution:Acquisition of land for new build (4 plex)Planning for blueprints and lot layoutGeneral contracting My crew(s) would do a majority of the work for the build at costProperty management His contribution:Down payment 20%We are discussing the possibility of him taking full responsibility for the loan, but given that the loan typically is paid out of the gross revenue I'm not sure how he could take on the full loan amount out of 50% net profit (EX: $4000 rent - $1000 property expenses = $3000 net rent, each of us would get $1500 and out of that he would pay the mortgage of whatever) My concern with that dynamic would be that the mortgage will likely be over the 50% net amount and leave him in deficit monthly. 

Yes Philadelphians have thick skin, blunt answers to your questions, but you have to get past that and really show interest in getting to know people for who they are.

Much depends on the friendship dynamic, no real hard equation for it, whatever makes both comfortable.

But, it's all about understanding the dynamics of syndication to be able to act at a minutes notice...Makes sense?

I take 20% equity and put no skin in as I sign  for the loan with recourse, doing my first deal now.  

I strongly suggest they close on it.. then at that point they put real skin in the game and are free to market it for whatever they want.I have hit a few dousies in my time..

I use dynamic pricing software (Pricelabs) BUT the software isn't going to just "work magic" for you!