Best structure for investing with multiple people

[Colin Kanuch]

Wanted to get people's opinions and perhaps personal anecdotes on how they structured and financed deals with multiple investors. I am looking to purchase my second property and have multiple people who would be very willing to invest and have some equity. In a legal sense, forming an LLC seems like the best structure. I would be the managing partner, handling the day-to-day and also have the most equity involved while of course limiting my personal liability and all the other advantages that come with an LLC. However, my problem seems to be financing. If you want to purchase a property with an LLC, you will have to most certainty get a commercial mortgage which will increase my rates. It increases rates to a degree that I don't know if its truly worth it or if I would even qualify for a commercial mortgage with a newly formed LLC. Quit claim deed seems like a useless solution that people throw around since the due on sale clause would just be put in effect making the whole mortgage due. So my question is, from either people's wisdom or experience, how have/would you advise on this situation? Is the extra rate in the mortgage really worth it going for commercial mortgage? Do I just do everything in my name and then have a separate written agreement between my friends/family/other investors to how the equity will be determined? How have you handled or advise handling a situation of multiple investors involving a deal that will need financing? Happy to read others threads if this has been answered before. Thanks