Private money structuring

[Joeseph Bivona]

My partner and I have a very full pipeline of deals coming up now with covid (hopefully) subsiding. We are quite liquid and have been able to fund our first few, but we're now wanting to invest our own capital into building a rental portfolio and collect private money for our flips and new builds. Im asking for minimum investments of 10k and generally approaching young professionals. I'd love to very soon put together large funds to fully fund projects rather than fund our down payments and points, but this is a good place to start I think. 

Originally my plan was to offer a 10% annual return on whatever the principal investment was. While that is a strong return, I dont know that people will exactly jump at the idea, as there money would be tied up for the year, or at the very least the duration of whatever project we put their specific lump some towards. The issue with paying out by the project would be that some projects will turn around in 3 months and others a year. 

My next thought was to offer a 5% return every 4th month, with the option to let the interest compound or to withdraw their interest. A friend of mine offered 5% quarterly, but that seems like too much? 

If anyone has any experience or ideas on how to structure these investments i'd greatly appreciate your input.