Using Private Investor 4 Flip: Who 'owns' the purchased property?

[Shawn Ward]

BP Friends,

I am partnering with another investor on our first flip and I have a couple questions that I hope I can get some great insight on:

1. PARTNERSHIP DEAL BETWEEN INVESTORS: I am partnering with another investor and we both are going into the deal together, as we are doing everything (acquisition, project management, rehab, marketing, etc) except the funding (which is going to be done with the outside investor described below). What sort of deal should we do? A simple 1 pager that states we are 50/50 partners? Do we create a new LLC? What would you guys suggest?

2. FLIP PROPERTY OWNERSHIP: My partner has a great private investor who he worked with on a previous flip deal (that's closing now) & basically wrote my partner a check and he turned around and purchased the property himself to do the flip. She (the investor) is a HNWI who is really relaxed and trusts my partner and we both know that going forward with other investors, this most likely will not be the arrangement. Thus, my question: In a typical private investor deal (not hard money lender), do they usually purchase and have the title during the rehab/flip period? Or is there usually a joint venture LLC created to purchase the property?

Thanks so much!

Shawn