Private Money Flip Question

[Travis Weitthoff]

Hi BP, I am performing a flip with two friends.  We are in need of 1-3 private money investors.  How do we structure the deal while be compliant with SEC regulations?  What is a typical payout schedule to these private investors?  Thanks!

[Caleb Jordan]

@Travis Weitthoff I am no lawyer. I think if you have a previous relationship with them there is not any special regulations about it. If you are soliciting people that you did not know before then they need to have a worth of 250k to be an accredited investor .

I've talked to flippers who basically pay a return on money to people who go into a deal with an annualized rate and then maybe some basis points. Some split the profits too, but it does not seem as common.