Can anyone analyze this deal with a potential investor?

[Kyle Lehman]

To keep a long story short, I own my own home, and own a cash flowing duplex I bought this year with FHA. I work a day job in the medical field. By chance, I met a real estate investor who is a realtor, used to be in the mortgage game and now flips homes. This person says they are always looking for new investors. This person showed me around to 5-6 different properties that they flipped as well as a few that are in the works.

The deal they are proposing is that we go in 50/50 on an LLC that purchases the house. Use a HML that they have used quite a bit in the past to fund the purchase, 12%, a few points up front. My roll would be supply the money for closing costs, rehab and carrying the HML. They handle all the renovation etc. Typical flips are 3-4 months. We split 50/50 profits at the end.

We are both going on the bank account for the LLC and I plan to fund it with draws only, no lump sum money into the account. I'll need all receipts and proposals of work too.

Is this typical? Any shady signs I should look out for? 

***My plan is to use this as an “in” to people with off market deals etc. I can nearly completely fund these purchases myself, I can do most all of the rehab, however I just don’t have the inside connections for these properties that require cash purchases.