Virginia LLC to invest with OPM
My friend and I are looking to start an LLC to buy multi-families with other people's money. I have looked into the LLC creation some but any tips/lessons learned on that? Especially on proper way to set the partnership between us and our investor(s)?
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@Quinn Barnett Before you start your partnership, there should be a frank conversation on expectations and goals. How much capital will each partner put into the partnership, how will the partnership equity be split, what roles does each partner play? These all should be clearly defined and written down. Next, you'll want to hire an attorney to make this official. It is an upfront cost before you are cash flowing anything, but will be well worth it IF you ever need it. A partnership, especially with friends and family, must be dealt with strategically.
Be aware of the rules of using other people's money as you may tow the line of becoming a syndication which will bring higher scrutiny and regulation by the SEC.
Best of luck!