JV Deals - How are these structured?

[Parker Whiteway]

Hi All,

I've come across a couple of buildings I want to buy, but don't have enough money for both. I hear a lot about people partnering up with a money person to do these deals, but I'm completely in the dark about the details of how this works. For example, who's names go on the title? At what point does an LLC or other instrument get formed? Whose credit gets checked if there's a loan involved?

Can someone talk me through how this would work?  Let's say for instance I'm trying to structure like this: 

Scenario 1:  
Person A:  Provides 100% of cash.  Basically no other responsibilities.  Assigned 50% of any profit.

Person B:  Provides 0% of cash.  Responsible for managing rehab, listing, rental, or whatever.  Assigned 50% of any profit.  

*LLC used as the partnership instrument

*Cash purchase of property

Scenario 2:  Same as above but conventional financing will be used.  Cash contributions the same.  

Appreciate any insights, thanks!!