Using an LLC. to make deals with other peoples money?

[Eric Cady]

I have an idea in my head and I am wondering what legal hoops I need to jump through to make it work/how to get started.

How easy would it be to register for an LLC, seek out 50k-100k cash investors, have them transfer the money to the LLC (or wire it to an attorney to hold in escrow), then buy land and build a multi-unit OR purchase an existing multi-unit? I have access to tons of buy and hold, flippers, etc and I can think of 3 off the top of my head who trust me as a realtor and would want to get in on this if I pitched it properly.

The LLC. (me) would then hire a property manager, maintenance, lawn care, pay the insurance and taxes, etc. and pay out the investors monthly from the net proceeds.

1.) How common is this?

2.) Is there a name for it?

3.) What am I overlooking?

4.) As a realtor, non-investor partner of this, how could I benefit from this (get paid) other than on the initial transaction?

5.) And most importantly, what are the ACTUAL logistics of this (I've just made this idea up as I went)?

6.) Is there a step by step guide for setting this up?