Partners

[Nelson Sellars]

I have two investors who are friends and want to invest with me.  They will be passive investors and I will be finding the properties, re-habbing them and working with all other people involved.  Since I will be using my labor and knowledge and their financing how should I structure the division of profit.  It will be my full time job and they are still employed at their jobs and won't be doing any of the looking or labor.

[J Scott]

Technically, what you're offering to your friends is considered a security, and is governed by SEC regulation.  To comply with SEC rules, you'd have to jump through a lot of hoops and pay a bunch of money to do this legally.

If you didn't do thing the "right way," you may get away with it, but if the deal goes south and one of your friends loses money and decides to come after you, things could get ugly (for you).

Talk to a good securities attorney if you have any concerns...