Should I create entities for every one-off deal with a partner?

[Victoria Townsend]

I'm sure the answer to this question is speak with an attorney, but before I do so, I would love to hear some real life examples of when you should create an entity when purchasing with a partner.

Here's the situation: I live in CA, and I know 3 different CA investors (lets call them John, Bob, and Adam) who would like me find buy and hold rentals in the midwest, fix them up, and rent them out. Basically, they provide the capital, I do all the work, and we split rental profits 60/40 (i'm the 40%.. which I don't mind since it's no capital on my end).

Now, John, Bob, and Adam don't know each other, and they would each be participating with only me in each of these deals. My question is... what type of entity should I form? I'm hesitant to form 3 LLCs in CA because that would be very expensive every year, but I also am not sure if a series LLC is the best answer either. My goal is to expand my portfolio with each of them... and potentially find later investors down the line as well.

Anyone have any advice on optimal entity structures when working with different investors on different deals? I'm hesitant to create just one LLC and own all of the assets in them, as that would mix up everyone's % ownership.

In the example above, I'm guessing I need to create 3 different entities, each of which clearly state that each entity is owned 60% by someone else and 40% by me? And then the title of each property gets owned by that LLC, and if ever re-financed, it is put under the investing individuals name?