Starting LLC, family member to invest

[Jason Dingman]

Hi all,

I just joined BP after spending many hours reading through the wealth of information on this site. I am looking to get started in REI with a 2-4 family rental. I am fortunate to be in a situation to have a family member that wants to help me get started by contributing some money without any expectation of a return or repayment. We are setting up an LLC in which I will be the managing member and she will be a member so that funds can be used to purchase property.

I have read through the Missouri SOS website on creating an LLC but am meeting with an attorney to make sure the LLC is setup correctly from the get-go.

The goal is to grow my portfolio with additional rentals and eventually make this produce enough income so that I can quit my current job.

Can a family member contribute to the LLC without any expectation of a return? I have found through reading that the managing member can be paid for their role as manager and that the profits in the LLC do not have to be proportionate with one's investment. I am also going to meet with an accountant as well but figured I could get some input from you guys at BP.

Thanks for your help and I look forward to taking the plunge.