Income tax question: Self-employment taxes?

[Christopher Throop]

I would really appreciate any opinions on a new business venture.  I think it's fairly straight forward as these things go, but it's new territory for me and I want to know the tax implications before taking the plunge.

Situation: I am considering forming a 2-member LLC with a colleague. Our LLC would enter into a JV agreement with a flipper and we would be funding his project in return for a share of the profit. If it's pertinent, I have a W-2 job that will remain my primary source of income.

Question: When I file my tax return (pass through to my personal taxes), will the profit from this LLC be taxed as regular earned income, and thus be subject to self-employment taxes? I know that flippers themselves generally need to pay SE taxes but I'm not sure how the government will see my role in something like this, when my LLC is only doing the funding and not the work. It feels more like an investment to me, although I know it won't qualify for capital gains tax since the time period will be less than a year.

Any input is really appreciated (my CPA is in the weeds this week!).