Investing with family - get a promissory note?

[Kyle Morse]

Hi, 

I'm a relatively new investor - I currently own one duplex that's fully rented, and have one completed flip property on the market to hopefully sell soon.

My next step is partnering with a family member - an uncle - who has expressed an interest in providing me with financing to help me scale my business. To start, we would partner on flipping a single family home.

My question is - what documents should I set up with this family member? 
A promissory note? An LLC? Anything in particular to make sure we're all set up to buy a property?

He would be providing 90-100% of the financing, I would be coordinating the rehab process.

Thank you for any advice you're willing to provide.

[Zac Mckenzie]

It really comes down to what lets you sleep at night, there isn't really a right answer to your question. An LLC is easy and gives you some protection as long as you abide by the rules. Setting up a separate bank account is also easy and free in many situations, this will allow you to keep things clean especially at tax time. Having a simple written agreement of loan terms and responsibilities of the two parties is always nice and it doesn't have to be from an attorney just something clear that you both understand and agree to with a signature. And it never hurts to have a respected professional that you know look things over as a second set of eyes. Don't overcomplicate things early on, as your business grows you will add layers and professionals to your team.