Partner is concerned about liability, help please

[William C.]

Hey there I’m not sure whether I’m looking for legal advice, Mortgage advice or something different all together but here last the situation. I’m an experienced real estate professional. Iv been an agent for over 10 years and have been investing for over 5. We have done 5 flips and one BRRR so far. Essentially every deal we’ve done has take about a year from start to finish, mainly due to our one man band contractor but that’s besides the point. My issue is this. I find the deals, analyze the deals, work with the contractors and or designers to maximize potential, then list and sell when it comes time. I know my market. I’m always conservative, and we,be made money on every deal. And we’ve made more profit on each deal in progression ending with a latest where we netted about $65k on a pop top. I say all of this to show Iv proven myself and my numbers to my partner. We are looking at another BRRR opt unity. Our first went better than expected, currently producing $1100/month net cash flow, around $50k equity upon stabilizing. This new deal has similar numbers and will cash flow a little bit more conservatively , and potentially 2x. My partner gets the financing in his name. He has the credit, assets, income to make all banks compete for the loan. He doesn’t enjoy the idea that he is “on the hook” for the loan. He knows we have many exit strategies, and he knows I can manage the building and keep it cash flowing just like our first deal that’s been stabilized for 2 years now. It’s just the thought of it in his name that he doesn’t like. How do I work around this? Do we form an LLC so we are both on the hook? I could probably get the loan, and have his “co sign”, but what other options do I have? Anyone else in a partnership like this and have the same concerns? Again, he’s not concerned the deal will go south, he’s just not a real estate guy. He’s been in the stock market his whole life instead. He clearly has trust that I can perform, we’ve done over $1.5m in deals together, he just ultimately doesn’t want the properties and loan “in his name” when all the dust settles. I can “buy” them from Him eventually. And we can co sign. But looking for other ideas. Thanks in advance.