Potential FHA Business Model

[Timothy Douglas]

1. Get 5-10 of our friends who we trust, want to build wealth, and are ready to run a business.
2. Let them know about FHA loans. 3.5% down.
3. They each buy a 3-2 or multi-unit complex (4 units or smaller) that they rent out to friends they like and know are stable. This is business after all.
4. Terms of the deal
   1. We will split the down payment
   2. We will split the cash flow
   3. We will split the Equity
   4. We will cosign the loan
   5. We would pick up 50% of 5-10 rentals a year with the low FHA Down payments!
   6. You could eventually do this with 20 friends or 30 friends or a whole community of poorer people and teach them about real estate!
5. End Goal
   1. Land trust - they get equity and live there
   2. Long-term rental into more rentals into multi-family
   3. Sell the home, split the profits, and part ways

My question is can my LLC cosign an FHA loan with our friends, and split the equity and cash flow. Furthermore, is there anything legal we need to know about? I've heard a lot about Frank-Dodd and our LLC "trading securities if we use private money or something like that.