How Do I Structure A Partnership On A Cashflow Property

<IMG SRC="images/forum/smilies/icon_confused.gif"> This is my first post and from what I've read over the past few months I expect to get some great advice. In short, I have purchased a beach house. The deal is strong in + cash flow and appreciation potential. I am holding the mortgage through the bank and will close on Dec. 3. I also have a silent partner who is going in 50% of the downpayment and mortgage cost. He is not on the mortgage due to credit problems a few years back from a car accident which he was in fault. We both want to put the property in a land trusts and LLC. My concern is how do we structure our agreement between us since I am hold th note. He is suggesting 50/50. I have no problem giving him 50% profit based on 50% investment. My prpblem is that he I am more liable because I hold the note. Our exit strategy is to hold the property for 1 year collect rental income from the beach season and sell next fall. How ought I to structure our partnership based on this information. THANKS!! _________________ [ Edited by ralphcochran99 on Date 11/25/2003 ]