Setting up investing with Friends and Family

[Scott Thibeau]

I have friends and family who want to invest with me. They have anywhere from 25K to 100K to use. I am trying to create a pool of money that I can use to buy, renovate and sell, making money for myself and my private investors. Two questions. 

1. Assuming all goes well per deal, what do I provide to my investors at tax time assuming they make money? 

2. Pooling their money together, is it as simple as creating an LLC for each project and providing the investors a percentage of ownership on it?