How do I structure this deal? Funds already in place

[Cody Barton]

Hi everyone,

This is my first time posting to biggerpockets so hopefully I am in the right section with this question. So I live in Arizona and I am looking for properties between $300,000-$500,000 that are anywhere between 6-12 units. I have investors that have funds ready to put into the property. So I have a few questions for anyone who has done something like this-

-I plan to get an LLC set up with myself and the two investors but am not sure what the share of the property should be broken up into- as I will be managing the property making sure it runs smoothly and will split 3 ways any type of repair costs/eviction costs that come up on the property but the 2 investors will be bringing all the money to the table for the down payment.

-I am also because it is my first multifamily deal uncertain of how to analyze the property entirely, I understand basics of cap rate and some of the things but not sure how to create a strategy of buying the right property with the goal of longterm hold with 8-10% cap rate if its best to buy something that needs a little work to up it to the rate or if I should go after something that is already performing.

Any feedback appreciated thank you!

[Tim Winter]

If you are looking around the Phoenix area, and find something in the 8-10% that isn't gang land, I'd love to talk to you. I have a dozen or so investors looking for the same thing and with the way the market is currently, are very far and few between. 

if your investors are willing to look in the outskirts or Tuscon, you might have a chance. 

As far as your structure, it would be better to have the two investors enter into an LLC as a partnership, with their own operating agreement done up by an attorney. Then you can contract with them to do the apartment management side. I'm assuming you have a license since the unit counts are low enough its not required to have on-site?

If you'd like to go into details further, just message me. I'd love to talk more about it.