LLC Logistics in holding title for a flip

[Michael G.]

Hello BP!

I had a proposal from a local flipper who was looking for a partner to do this Fix-n-Flip:

• House at auction: $250K.
• Needs $60K-$70K in rehab, then a market value of $400K.
• I buy the house at auction for cash and fund about half the rehab.  They fund the other half and do all the work.
• We split the profits at sale.

There were a few things that caused some concern, but the biggest one was that they proposed holding title to the property "in their LLC". I was not comfortable with this, mostly because I don't know much about LLC's, and since I would be buying the house and have the lions share of financial stake in this deal. I can understand each of us wanting to protect our stake in things, but I don't really understand holding title to something that I'm buying in an LLC that they control?

Any insight here?