Deal Structure Advice When You Have Multiple Investors Lending On One Property

[Dustin DuFault]

Good afternoon BP!

I have two investors (one family, one friend) who would like to fund a flip I have under contract via notes @ 10% interest.

What is the best way to structure these deals when you have multiple investors? The property is to be purchased in my LLC, and I will fund the repair costs.

Thanks for your help & advice, as always!

[Crystal Smith]

Originally posted by @Dustin DuFault:

Good afternoon BP!

I have two investors (one family, one friend) who would like to fund a flip I have under contract via notes @ 10% interest.

What is the best way to structure these deals when you have multiple investors? The property is to be purchased in my LLC, and I will fund the repair costs.

Thanks for your help & advice, as always!

 2 ways we've structured deals like this in the past:

• They provide you a loan secured against the property.  The loan would show the % interest each investor has in the note (Naturally there's more detail but this is basic & common)
• Add the lenders to your LLC as members. LLC operating document can reflect the capital contribution of the LLC members (This could include the loan from your investors) The LLC operating document can also reflect the return for each member. The LLC operating document can be accompanied by a note. (Again- I've simplified it here. Devil is in the detail & you should consider consulting an attorney)