Protecting your money in a joint LLC purchase

[Sean Mcmahon]

Hi BP community!

A friend and I are looking to do BRRRR's together -- he'll do the rehab and I'll provide the capital for cash deals. Our plan is to setup a joint ownership LLC to acquire the property. Once its rehabbed and rented, we'd transfer the property to an sole ownership LLC, owned by one of us (we'd switch off who got the property rather than owning all of them 50/50) for the refinance. The party who didn't get the property would receive some payout -- him for his labor, me for loaning my money.

(In case folks are wondering, we'd utilize a joint-LLC rather than a single-LLC as there are lower licensing requirements in VA if the GC owns the property).

Here's my question -- Any advice on how I would protect my capital? I was thinking about formally loaning the money to the LLC, but I don't know if that protects me.

I trust my friend, but I'm hesitant on transferring my money to an LLC in which he controls 50% -- in other words, if things went south, there goes half my money...
Has anyone done a similar arrangement? Any recommendations on a good CPA or attorney to consult on the setup?