Partnering up with a friend on our first deal

[Oliver Lazaro]

I'm thinking of doing a deal with a good friend of mine. We both know how to do most of the work, but it would mostly be him since i have another job that takes up a lot of my time. I would be basically funding the rehab since he had already purchased the property a couple months ago on his own before we spoke about partnering up. Property was bought for around 45k ( that he paid out of pocket) and probably needs around 20k-25k for rehab. 

 I just need advice on how to split the profit or losses if any ?

Do we need to create an LLC or would a contract be good enough ?

What would be the best thing to do in this situation ?

Thanks