Found Money, How do I Accept It

[Osazee Edebiri]

Hi BP,

I am working on the Brrrr strategy right now and I have found a few people who are interested in being private investors for me.

The part I am confused on is I have been told that we just go to an an Escrow Company and sign a mortgage deed.

Can someone help me elaborate on that part of the process? 

Do I need a real estate license to collect private money from friends?

I plan to pay a monthly ROI and at the end we would split any profit over.

Do we just show up at Title Company and say we want to fill out Mortage Deed and put in the terms, or do I need to have something filled out beforehand?

[Levi T.]

Originally posted by @Osazee Edebiri:

Originally posted by @Curtis Harvey:

@Osazee Edebiri What you are trying to do is syndication. There are plenty of information on BP about that. Just search the forums for information. You could also accomplish this with setting up a LLC and giving your investors shares.

Thanks Curtis, I plan on creating an LLC right away, but I have read on BP people doing this method without a syndication.

You really should get an attorney, but generally speaking you want to setup a non-stock LLC with multiple members, you being the managing member. Your going to have to find or draft a operating agreement, that is signed and notarized by all parties. I recommend you get an attorney to do that for you, and just take the few hundred in cost out of the investor capital as part of setting up the business, at least then you know it's done right.