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Updated almost 3 years ago,
How to small scale fundraise for your RE business
Hello,
What the best way to structure a company that makes it easy for investors to invest money into your RE business for short or long term gains? I have many leads & opportunities to acquire multiple distressed properties around my area that I can rehab for short term flips or long term holds. How can I structure a business plan that would allow me to raise capital to do these projects and then return return profits to my investors? For example, lets say I need $200K for a flip project and I have 4 investors who are willing to invest $50,000 each into my project. How would I set this up? I would like to maybe use this $200,000 investment from my investors to do multiple flips throughout the year and then at the end of the year share X% of my profit with them. The profit will of course vary depend on how well I do that year. The investors have no say/control on what type of projects I work on, hold, sell, acquire etc. They have no interest no desire to be involved in my RE work but are only looking for cash return on their investments. Thanks in advance for your help.