Raising Private Money to fund Deals

[John Gallagher]

I am trying to pull together passive investors to fund a fix and flip.  What are some of the common practices in structuring these agreements between me the developer and the investor?  For Example, is it common to guarantee both the principle investment and a rate of return to the investor or just the principle? In the case of using / combining hard money or bank financing, how is the privately invested money secured if the bank or the hard money lender is in the 1st position? Are the returns that people offer annualized (like 10-12%) or are they based on a % of the initial investment and project whether it takes 6 months or something shorter than a year? 

[Chris Martin]

probably worth a 30 minute discussion with a MA attorney well versed in syndications.... you/they will look to make sure you fit into an exemption for pooling investor funds, etc.