Question Regarding JV Structure for Rehab/Flip
I'm preparing to partner with a GC to rehab and flip a SFH (and hopefully several after).
The plan: I will source the deal, complete financial due diligence, and secure funding for the purchase price. The GC will manage all phases of design and build, and cover upfront associated costs. Upon sale, any lenders will be repaid first, then he'll recoup his costs, then we'll split remaining profits 50/50.
My question: Is it best practice for us to set up an SPV (LLC, LP, etc) so we both own the property 50/50 then proceed from there? Or can I just purchase the property and draft up a partnership agreement outlaying the terms I've written above (meaning he would not own the property technically but he'd have contractual claim to 50/50 of the profits and of course his upfront costs for the work done at time of sale).
I do plan to consult a lawyer, just wanted to get a little practical feedback first. Thanks for all responses!