Setting up a deal with a partner

[Jeff Bleck]

Hi everyone,

I've been working as a PM and I have purchased few apartments out of the U.S, but I'm interested to expand and purchase properties here. I have a difficulty to take residential mortgage due to credit score.

I need your help in setting up the following situation: 

A friend, who has no experience in real estate, has the ability to take residential mortgage and offered to invest with me. At the moment we look at duplex, asking price: 150K, repairs estimated at 50K and ARV is 250K (obviously there is much more to this deal - but that would be for another post). We each would like to put 50k, which will add up to 100k for down payment, closing costs and renovations. The goal is to refinance and rent the duplex with high COC.

Few questions:

1. He will be a passive investor, what is the common way to split profits of capital and returns in this scenario?

2. How do we set an LLC and then a mortgage on his name when we both own the property?

Thank you for the help!