Collaborating on REI While Avoiding Joint Liability

[John Neville]

My friend and I are interested in buying a real estate investment property together. We want to pool our money, but we want to keep him off of the loan and potentially even the deed. This way, he’s not stuck with this loan on his credit report and can be free to buy other investment properties with leverage. Because of joint liability, having both of us on the loan is not ideal.

Is there a way for us to structure our own legal agreement so that he can send me his portion of the down payment and then I periodically repay him as rental profits come in? Or would that not work because I'm not a registered investment advisor?

Thank you for your insight. I'm looking to speak with a tax professional (lawyer or CPA) with experience in real estate law about this.