Investors want in, what do I need to do?

[Joshua Howes]

Hey BP fam, I've got a question regarding investors. I've been successfully flipping houses for over a year now and more and more investors are approaching me with interest in investing. I've heard on numerous occasions about flippers using OPM to finance their deals and then splitting the profits with their investors. Assuming they aren't added to the LLC as a member or included on the deed, how do they secure their investment? From a profit/tax standpoint, what needs to happen to ensure both the LLC owner (me) and the investor are above board with the IRS and any other entity that I'm not aware of.

Loaded question, what if there are multiple investors interested? Of course the more money the easier it will be for me to scale. I just know I'm missing something. From structuring the investment all the way through cashing out, I want to be sure we are squared away. Any help is greatly appreciated!!!