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Updated almost 8 years ago,

User Stats

29
Posts
13
Votes
Todd Summers
  • Investor
  • layton, UT
13
Votes |
29
Posts

Raising Capital and Structuring Questions

Todd Summers
  • Investor
  • layton, UT
Posted

So I have a general idea of how I would like to get started in REI but am fuzzy on how to set this plan in motion and what the first steps I should take are. I am fortunate enough in my life to have close personal relationships with people I have known 10+ years and who just happen to believe in me enough and be financially secure enough that I wouldn't feel like I was burdening them by asking them for capital to start my REI venture. I have also been very lucky and married way out of my league to a beautiful woman who also believes in me and wants me to go after my dreams of owning my own business (and who happens to be a high income earner). Ok now I will get down to my plan.

So I would like to start out by raising $100,000.00 in capital from four investors (one of them being myself). So the four of us would all invest $25,000.00 and have equal share. Here are my first few questions: I would be managing partner as all the other investors would simply be cash investors. Set up in an LLC entity does the managing partner have to have more equity than other partners or is that more of a preferential thing? Should my first step be to set up an LLC or contact an attorney about the legality aspect of all of this and have contracts drawn up? Also since I have close personal realtionships with these potential investors how do I go about presenting this as a business venture and not looking like a guy with a half baked plan looking for free money?

I do have a plan detailed on what to do with the funds once I receive them and id be happy to go into it in detail if people are interested in hearing it but my questions mainly come from the legality standpoint of this plan and how to structure it and where to find answers to my questions. I'm not afraid to do the research myself and figure it out I just need pointed in the right direction. Thanks in advance for all responses and advice it is much appreciated.

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