Entity Formation/Equity Partnership in Flipping Business

[Shane M.]

Hello BP members,

I am a buy and hold real estate investor based in NJ. I plan to be a passive investor (equity partnership) with a friend who will find deals, manage the rehabs and flip. He will be doing business under an LLC. What would be the appropriate entity structure for me to form as an investor to invest with him? Is there an entity such as an LLC/Corp or any other suitable entity that I should form from a tax perspective that would minimize my tax liability? Or do I not need one?

Any other thoughts/suggestions would be greatly appreciated?