Bringing in Investors for long-term rental BRRR Fund

[Justin Phillip]

Hello all, I'd appreciate any feedback or input you can provide :)

I love the BRRR strategy and have done a handful of deals. I intend to keep acquiring [cash flow positive] rental properties through BRRR and hold them long term.

I have quite a bit of friends and family who also wants to 'invest in real estate', but don't have the time or are in geomarkets that aren't ideal for the BRRR strategy.

Have any of you partnered with multiple investors to raise a fund that is specifically used for acquiring longterm rentals? For this scenario, let's say the investors are less interested in getting 'interest' on their investment, more than they are owning equity in the deal long term. I would function as the manager of the fund and would source the deals, project manage the rehab, and manage the rentals. Additionally I will take responsibility to secure long term financing on the property (with all of the investors guaranteeing the property) and then using the cash outs to keep acquiring more properties.

I realize that all of the investors eventually want to get paid back which can be resolved through an eventual liquidating of the portfolio or refinancing the deal to pay off investors.

Do any of you have experience doing this? Any recommendations or resources you can point me to? Any ideas on what type of entity should be formed, structure, etc? 

The reason I want to do this:

- avoid costs with lending 

- scale and grow portfolio faster

- bring value to my friends and family

- i love real estate and BRRR

TLDR - My friends and family would like to partner with me in doing BRRR (building a portfolio of long term rentals). They would solely function as providers of cash, and I will source/acquire properties, rehab, rental management. Is this possible?