Raising Capital From Friends and Family

[Jeff Matlock]

I would like to do bigger deals and get into multi-family investing. My wife and I own one single family house but I would prefer to jump to bigger deals as quickly as possible, whether a 6 unit or 20 unit apartment. I am trying to educate myself and get an outside perspective on the process. I am a commercial mortgage broker so the financing part is easy and I know a number of sales brokers that can help me find property. My questions surround how to set up the LLC and the splitting of the profits if I put a minority share of the equity but want to get paid for the work I put in to acquire, organize and asset manage the property.

Where do I learn about profit sharing and how to set up a win/win partnership with friends and family?  Let's say we put in a minority part of the equity 10% or 20% how do I structure it so I get more than my share of the equity invested?

Can anyone give direct examples of their first couple deals they did their first deal with friends and family?

If I am the active partner finding the property and making all the day to day decisions how do I get paid for finding the property and making the asset management decisions? (not day to day property management decisions, we will hire a 3rd party.) 

To warm up friends and family did you put together a "hypothetical package" and say if I find something like this will you invest?  Or did you get the project under contract and then go find the money?

Thanks,

Jeff