BRRRR with a partner/investor

[David Roberson]

I have a couple of questions I was hoping to get some guidance on. 

My wife and I are wannabe investors who were initially enamored with flips as a way to build capital but always thought the idea of BRRRR made more sense in the long run.

We have yet to find our first deal but are getting things in order to do so, slowly making contacts in the area we would like to invest in. 

The BRRRR book arrives tomorrow so please forgive me if these questions are answered there.

We have a family member with significant cash resources who has shown interest in partnering with us in some way but I'm struggling to understand how or what the financial incentive is for them to work with us. Where would/could a partner fit in on the BRRRR strategy?

It seems like if you work the BRRRR correctly at a minimum you can get your cash back out but usually, you can't expect more. How would the borrower reap any benefits from that? I would like to build a fair mutually beneficial relationship with them but can't seem to grasp how to include them or incentivize them to use their capital.

Secondly, when we began talking to a HML when flipping was our focus we were told that we needed to form an LLC. From some things I've read, it looks like you can't or shouldn't use an LLC when you intend to BRRRR, is that true?

Thanks, 

David