Buying Residential RE (1-4 units) With A Partner's Capital

[Liam Galbraith]

Hi BP Community,

I'm looking for a way to purchase residential real estate with a partner's capital. I will do the work and my partner will provide the funds. Profit/Equity split 50-50. I'm looking for a way to do this that protects both mine and the partner's assets. 

The Problem

1. I can't take out the mortgage under my name then transfer title to an LLC because it will cause co-mingling of funds and render the LLC protection obsolete. This pierces the corporate veil.

2. We can't just form the LLC and go get a residential loan because conventional residential loans have to be given to a person and not a legal entity.

3. I dislike the idea of getting a commercial loan on a residential property because if the residential real estate market crashes near the time our balloon payment is due, we could default if residential prices drop. 

Does anyone have a suggestions as to how we can purchase residential properties while avoiding the 3 problems listed above? Thank you!