Raised money for Auctions; How to Structure Agreement?

[Gi'angelo Bautista]

Hello everyone,

I raised money from investors (friends and family) to purchase SFR properties at the auction with all cash to flip. I'm trying to figure out what contracts I need with them so we can have an agreement together. These investors will put their money into my business account, then I will take cashiers checks to bid at the auction. I do all the HW upfront and present each property to the investor before the auction. My responsibility is to handle the acquisition, rehab, and disposition of the property. I already have a team in that city to do all the work. The investors act as silent partners. This is a passive investment for them.

I thought about using a JV agreement with the investors, but when I asked a local real estate attorney, he said that I had to use a Private Placement Memorandum instead. Then I will have to have each investor sign a document that signifies they are a "qualified investor.'

I'm wondering if anyone has done something similar?  Is there an easier way?