Multiple Investors - Contractual agreement to share income NO LLC

[Brad F.]

4 members of our family would like to invest in 4 rental properties using leverage (mortgage). For this reason I think an LLC or legal entity is going to be a challenge and we would like the tax benefits of individually having a mortgage and depreciation on a property.

I was thinking each person could buy/finance their own property and get the tax benefits of individual ownership such as mortgage interest deduction and depreciation. Each person would then sign a "management contract" or something like that with a new LLC and then contractually agree to pay the LLC 100% of net operating income for their property. The contract could also say the LLC would cover a member's loss if one property had a bad year. The LLC would be made up of the 4 family members.

We would get the leverage and tax benefits of using a mortgage and by agreeing to all share profits and cover losses through a LLC we get the risk diversification we are looking for with multiple properties.

Is there a name for this? I would love to google it and read more about it.