Investment Clubs: Seeking Structuring Suggestions

[Shakhlan Garane]

Hello fellow BPers! I am a newer investor (located in Columbia, SC and Portland, OR) looking to scale my buy-and-hold portfolio. I and a few friends are interested in forming an investment club to pool our resources and purchase and hold rental property. My question is--does anyone on here have experience with investment clubs? Any suggestions on structuring, including preferred legal entity and payment structure to club members (fixed interest rate or share of monthly cash flow)? In an example scenario, I was thinking of making myself the general partner in control of the deal, with club members acting as limited partners with a minimum lump sum buy-in. Am I on the right track? Of course, an attorney would form the entity and could probably help with the necessary paperwork, but I wanted to get educated on this for my own understanding. Any feedback welcome! Thank you!