Joint Venture Financing Question

[Alex Novak]

I was listening to a BP podcast episode about short term rentals. And ways to acquire more properties without having to come up with that 20% down payment. Joint Ventures was touted as a way to do it with no down payment. My question is how is this structured? If I find someone who wants to invest in real estate but doesn't have the time to manage a rental property, but they have the cash, how does it work? For example, if the property is $200k, and the down payment required is $40k, do they split the cash flow evenly after expenses are covered? And say they sell after one year and the property is worth $240k. So if they get a check for proceeds of $80k (roughly, not considering what may have been paid down in that year), does the investor get their $40k down payment back, and then they split the rest of the proceeds? Or is there some other configuration? Also, are both people's name on the mortgage? Is there a side agreement dictating the terms of the JV? THANKS!