Private Investor Structure

[Jon Penhorwood]

Hey fellow BiggerPockets members! My brother-in-law & I have a real estate investing business together to do flips & rentals in Michigan and are going to start bringing on private investors to invest with us. Wanted to gain some insight from those on BP who already utilize private investors. What have you found to be the easiest way to structure these deals? Do you bring the private investor on as an LP? Create a separate LLC with the private investor as a member (and then possibly do a quit claim deed to your LLC)? Any others? Our goal is to make the process very straightforward for the private investor, so that it makes it easier to both scale our business, and bring on more private investors. All of your wisdom & advice is greatly appreciated. Happy4th! Thanks!