Best way to invest with a flipper

[Ben Bakhshi]

Hi all,

I have been investing with a house flipper and wanted to get some advice on best practices on how to proceed.

The flipper collects funds from multiple individuals or LLCs. The flipper is supposed to buy, fix, and sell, on behalf of the investors in a single pool. Once a month multiple homes are purchased with investors' funds.

What are legal and financial options for this process?

Should one LLC be opened every month with investors owning the LLC and given equity, where the flipper is the manager? Then title would be under this LLC. This seems straightforward for me.

Should we have a partnership with all of the investors, and title goes under the partnership? Not sure how this is handled legally.

Last option is to have the flipper use my money to buy properties in separate title. In this case I wouldn't benefit from homerun deals in which I didn't have enough capital. Other options let be a minority investor.