The house was jointly owned by three siblings, one of which lives in the next door apartment and wanted to stay put as a tenant, so the sellers were not entertaining offers that would have her vacate the unit. 

Yes you would want to set up a joint venture agreement detailing the terms of the agreement and what to do in each scenario.

I have contractor connections because I have also been in the construction industry in one way or the other, building relationships with these professionals over the years.Would a joint venture be the best way to do the first deal to build trust with my private investor?

This is a way to joint invest with my son, not throw $15k a year away on renting for his 2 years at college and a long term investment. 

hey taylor, of course I have to disclose I'm not an attorney, and you should consult with one for your unique situation, but I always have consulted with good ones and whenever we acquire a piece of property - either individually or in a group joint venture, you always want to shield yourself and your personal assets from any litigous situation by purchasing any property in an llc.Its not to say that you can't buy in your name personally but when it comes to business deals, always cover yourself.

Our plan is to setup a joint ownership LLC to acquire the property.

I did some research on ways to legally structure a partnership and found that it can be set up as a partnership, joint venture, or LLC.

@garydashner. very true. i've found that when its a deal, the first person i call will buy it. they know their numbers and they trust my repair estimates, even if i'm off by a few thousand, if i'm within their price range, they'll stick take it. those are the pros and people i'll joint venture with on some rehabs. contrary to popular belief i don't have a big buyer's list. i've got around 8 active rehabbers who are constantly buying. however i am going to expand my list as i've heard of wholesalers getting private lenders off their buyers list.

Then joint venture with a long term investor money partner.

Depending on projetc -- and exit strategy-- there is a way to raise fudns -called " Private Placement Offering" --which will cost $10K to $15k for attorney fee to write a Memorandum.Then contact Investors-- many rich people have lots of cash available -- and ready to invest if right project --Joint Venture or Partnership is best for specific project with good exit strategy.