How to use multiple investors' funds?

Question

Hi Everyone,

I want to start buying single family homes in California to fix and flip.  I have several of my clients who want to invest with me.  Do I put all their money into a business bank account or do I just have everybody put in money into escrow after getting into contract with a property? What does everybody else do?

Jo-Ann Lapin · Answer

There is a attorney named gene trowbridge . Look him up.

Jeff Greenberg · Answer

What you just told me is you will be creating a security.  There are many discussions on this forum on this subject. Unless you want to be guilty of selling a security without a license, learn how to do it properly.

Gi'angelo Bautista · Answer

@Jeff Greenberg I will be taking 100% of their cash and using them as an equity partner.  We will be spitting 50/50. My partner and I will be responsible for acquisition, renovation, and disposition and we will be splitting the 50 between us.  The investors giving 100% of the cash will be receiving 50% of the profits.  They will be taking 100% of the risk.

@Jo-Ann Lapin Thank you for the referral!!! This definitely helps a lot!

@Mushfiq S. I'll PM you.

Jeff Greenberg · Answer

What will the structure be?  Will they receive a share of the profit?  What about a share of the losses, if any?

How to use multiple investors' funds?

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