Promissory Note instead of Partnership LLC?

[Chivas Miho]

Hey BP, I know this partnership subject has been discussed thoroughly throughout the years, but hoping to get some advice here. I have a coworker that I've been discussing real estate investments with for the better part of a year, now that I picked up a OOS rental he's been more interested and serious about investing with me. I'm a little concerned with starting up a Partnership LLC mainly with all the formalities and potential issues that could cause a strain our friendship. From the discussions we've had, he's mainly focused on the returns and less on the nitty gritty details.

Does asking a lawyer to draft up a promissory note on interest only terms for 12 months with a balloon payment make more sense on our first deal? The plan would be to BRRRR the property and pay back the note before the 12 month period is over. I'm leaning toward this path until I get a little more comfortable with doing business together before jumping straight into an LLC together, especially since I've been down this road twice already and failed after previous partners lost interest or couldn't meet commitments. Looking for any advice from others in the community and if anyone has successfully repeated this. Thanks!