Legal question on structuring a deal

[Vu Nghiem]

Hi all,

I'm a novice investor that have done a few live flips deals on my own. I have a group of friends that is willing to commit about 300K of capital for me to BRRRR with.

How should I structure the entity so that all of my friends have a piece of the equity and not coming in as a lender? There is about 10-12 people willing to commit 25-50K each. 

300K is too small to justify the costs of private placement memorandum and subscription agreement in the formation of the LLC.

Is there a way to have all these friends of mine, lend on the deal until I complete the cash out refinance, then sell them the equity in lieu of repayment of the loan as a work around?

Any advice is appreciated.

-Vu