Pooling money for multi family deals

[Marc Izquierdo]

Hi everyone, In the second half of the year I plan on finishing up my DIY rehab on my duplex that I closed on back in December. I’m starting to think of my next move and would like to try to tackle a 5-10 unit building next. My strategy for acquiring this building would be to find the deal and raise maybe another 50-100k through investors who may be interested in my network. I would ultimately want to refinance the property after rehabbing it and streamlining operations in order to buy out the investors. I would remain in ownership with another partner or two at the end of the day under an LLC. However, I have a few questions on the logistics of how that would work. What is the best way to legally accept money from investors to ensure both my LLC (and its members) and the investors are protected? I was thinking of just a promissory note with each investor to lend the money, but would that give the investor an unsecured loan? I’d like to pitch investors the deal and be able to say that their money is secured by the property. What is the best vehicle to do that? Can each investor have a lien on the property for the amount that they contributed? Any advice or experience anyone can share would be great! Thanks in advance