Partnership with Down Payment split

[Benjamin Fertich]

Hi All,

I have recently been approached by a friend of mine who is interested in getting into real estate. I have a bit of experience as I have done 3 deals in the past. However they have all been relatively straight forward, using another person's money to invest is a totally new concept to me. My friend has about 10k in capital and is very willing to manage and improve on a property but has no idea how to obtain a mortgage or put together even the simplest of deals. He would like to go in together and buy a property. I am starting to love the deal making process and intend to read up about partnerships and using other peoples money but am reaching out for some preliminary guidance from the community. I have done some searching through the forums and it seems there are many ways a partnership can break down, but here are my specifics:

My friend can contribute 10k

I can contribute 10k

Property X costs $80,000, which requires a $16,000 down payment, with fees our total to buy the property costs $20,000

Property X generates $1000 NOI and we split it 50/50.

My confusion stems from how to bring the money together to pull this off. 

1. Do I need a partnership? an LLC? Some legal document spelling out our terms?

2. Will a bank want both of our names on the mortgage and title, or just one? Is my friend a GP or is it like a married couple purchasing a home? 

3. Do we split the cashflow, equity, risk 50/50? 

4. 50/50 even fair if he manages it? 

5. Who has final say on major decisions? or do both partners  need to be in agreement?

Like I said, i'll be doing extensive research, but any info provided simplifies the process and helps me move faster!

I appreciate any book recommendations for investing with partners.