Have interest from private money...Now What?

[Larry K.]

I have one 2 family under my belt. Currently holding it successfully with cash flow. A relative watched me do this and now wants to do the next one with me. He may have some buddies who also want in. Not exactly sure how.

Would we form an LLC put money in and then I'd be the "Managing Partner" spearheading most of the search, buy, renovate, and hold?

or, similar to that but after I find the right deal we put together the LLC right before we buy?

How to handle Returns, %'s, my time managing the renovation, then my time managing the property, etc......

Keep in mind I am interested in buy and hold, not fix and sell.

Slightly complicating this is that though I am a buy and hold guy I'm not thrilled about the idea of holding a property for several years with a relative knowing the property management issues that might arise. Perhaps I would need a way for them to be a silent partner.