You will need to create a LLC together and I would suggest having an attorney do that along with an in-depth operating agreement that covered EVERY possible issue along with what everyone's role is.

@Monique Pope Based on your thread comments, it appears that there are two separate agreements to consider:The option to purchase agreement you signed originally, andThe CRPA to be executed when the option is exercised.Here are a couple of things to consider bringing up when you head into court (BTW, I am not an attorney and I know nothing about California statutes regarding real estate purchase option agreements).In general, for an option agreement to be valid it should have:A specified period of time that the agreement is in force (which yours appears to have), including the conditions under which the time period may be extended,A fixed selling price for the property while the option agreement is in force,A clearly defined method for exercising the real estate option, andValuable consideration paid to you in return for being obligated to sell the property during the time the option is in force.Regarding point #3, execution of the CRPA could be part of the "clearly defined method" for exercising the option agreement. 

He walked property with me and provided assurance I needed to put in a quick offer without taking excessive time to evaluate area I'm not versed in or try and hire a contractor to walk property with me.My partner proposed that I get an annual 7% return on my down payment off the top of the net cash flows and retain 100% of the initial equity from down payment and then we split the remaining cash flows and equity gain 50:50.To me this almost emulates a 3 party deal with a money man (7% annual return interest only off top) , a real estate investor (50% equity gain and 50% remaining cash flow) , and a contractor/repair man (50% equity gain and 50% remaining cash flow) except that I take on the role of the money man and the real estate investor. 

What would his role even be in the whole thing?

@Joshua LevasseurNot really for that kind of thing--The fire marshal has a role when it comes to inspecting buildings being built to be sure they are meeting fire codes (in some areas that includes houses, but in many places they really only bother with commercial).

If things are going smoothly, and we want to renegotiate terms with the seller, we may exercise our option and keep this in place for another 5 years.

It's more of a developer role verse just being an architectural firm which provides professional design services.

Dogs need exercise and if the owner takes the dog for a walk in the city, they are violating the law.

Your role is to do your due dilligence on the asset and try to purchase it at a property you are happy with.

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