.- We contribute the asset to a joint LLC that we createScenario #2:- He takes out a loan and buys the building for his own LLC.- He then sells me a portion of the LLC for $500K.I see some pros and cons to both scenarios, but I mainly want to make sure that I follow the established process.  

I'm an American (Minneapolis, Minnesota MN)The Intended DealAlfonso and I want to JV (Joint venture) a houseflip together.

Is it possible to form a joint venture or other form of non-entity partnership to make this work?

The only difference is, will it be a below the kneed or above the knee amputation.

Everyone we have networked with says we must have skin in the game to do any kind of joint ventures/learn from them or even join a team, which we would love to do, however we basically gave our life savings to a family member to deal with a health battle.

. ($500K if you're married and filing jointly.)

@Geoff Cavender All the answers you are looking for are already here on BP - you should read these:How to Effectively Conduct Joint Venture Agreements as a Real Estate Investorhow-do-i-properly-construct-a-purchase-with-a-partnershipcreate-an-llc-for-first-partnership-best-way-to-do-sotaking-on-partner-s-and-limiting-our-liabilitesIf you still have unanswered questions after that, you need specialized help - talk with @Scott Smith.

"I hope I won't get audited" is not a strategy for success.Secondly, I will caution that there is information on the internet about "partnering with your IRA" such that a joint venture is setup. 

If there is more than one Borrower of this Loan, the obligation of each Borrower shall be joint and several under this Loan.Amendment.

Have a mason inspect the brick exterior, failing lintels or joints that need pointed could be bigger ticket items plus can allow water pentration if you are not aware of them.