Real Estate Investment Company Structure

[Jon Silver]

I am looking to start a LLC for real estate investing and want to allow for investors to help me. I have a LLC for another company so I understand the ins and out of LLC, but not with investors. I own 100% of my other company. I want to create a LLC and ask others to help invest in properties and pay them a return, but not give them ownership of the property or the company. So they would get a set return, and I would own the asset and the company. So is this a common way to do this, and what is the typical return offered to investors? Also, if I needed to give ownership of property or company, how does this work?

[Brock Mogensen]

Sounds like you are looking for debt investors. Generally around 10% is the rate of return for a debt investor. You definitely need to talk to an attorney familiar with structuring these deals. There is much more to it than an LLC. You will need about 100 pages of legal documents as what you are talking about is a syndication structure..most likely.