I agree with @Brooklyn McCarty ...Too much money to get in and too many restrictions.

We have a solid team that can support us in this endeavor but I would welcome any guidance those of you who have done this may have:1 - What are the major pitfalls that we need to be aware of with doing something like this? 

An example of this would be mixing your personal money and LLC money in the same bank account.3.

If you live in the property there are some great owner-occupy loans available, like FHA or low money down conventional loans.

If it is, and I still want the deal, regardless of all these issues, taking some risk if the deal will close, I will put the money to the wholesaler in escrow with a clause that says, if the deal does not close in 2 weeks, the funds will be returned to the buyer, just to be safe..

6 properties over 6 years is impressive.If you continue on this approach, you may be able to do better than 1 property per year if you make more money with your employer and are generating cash-flow from your renttal properties.Why switch strategies if you have something working for you?

I want to pay them a preferred rate of return on their money without giving up equity in the deal. 

I know that I stand to make more money per renovation by just paying for the work, but I'm attracted to the idea of partnering with him for a few reasons.

I'd rather use the money to buy another property(s).....

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