New to Flipping - Looking for 1st Project

[Robert Walden]

Hello,

I have owned a couple triple net commercial properties for about two and a half years now. This is about the extent of my real estate experience, other than buying my first house and having my second house built.

I've talked with a couple friends of mine and we've all decided to go into business together and find a property to flip. 

The first friend has had over 20 years experience doing flooring, cabinetry and just about everything else you can imagine. My second friend has also done many of the same projects in the past. Both have time on their hands, but not much capital to put up for a project such as this. That's where I come in. I'm looking to be a mostly passive investor.

We're going to meet up soon and hash out some of the details. I need advice about what's fair when it comes to splitting up profit. I'll be putting up whatever money is required for the property and they will be doing the work. What percent of the profit should I ask for, being a passive investor?

I thought I'd probably setup a Partnership LLC, so that we don't run into issues down the road. Should I do anything differently, or is that a sound choice?

Both of these guys are very trust worthy, so I'm not worried about anyone trying to take advantage of anyone, but you never know what can happen, so thats why I'd make sure to have an LLC or something similar created ahead of time.

Any other advice about terms of the agreement or anything related to flipping houses that would help me, would be appreciated. The long term goal would be to do a few of these and if it goes well, start hiring trusted contractors and doing more at a time. 

Thanks for your advice and time.

Robert