How to structure a deal using an LLC with a private investor

[Dave R Ludolph]

I'll try to make this simple as it can probably get a little confusing from typing. I have an LLC with a partner and we are investing in properties under this LLC. We have a few friends and family members who would like to invest in real estate through our company. What would be the best way to structure all of this? Most of these private investors would like to have monthly cashfkow rather than a big payout. Is there anyway these private investors csn have some kind of ownership of properties but it still be managed and dictated by our LLC? My partner and I plan on talking to an accountant as well as a lawyer about this. Thanks in advance for your reccomendations!

[Jeff Stein]

@Dave R Ludolph

I have done something similar to this with two of the properties I own. One of the easiest ways to do this is having them as percentage owner of the LLC. In addition to the LLC you need a lawyer to draft an operating agreement that everyone will sign. In this document it'll dictate who is managing, how decisions are made, and how payouts are done.

Just as an aside, paying out monthly will I had lots of work to your bookkeeping. I recommend add most pain out on a quarterly basis to keep the accounting more simple.

Feel free to shoot me a message if you have any other questions about this. It’s not very complicated thankfully, but it does require a little money and a lawyer to make sure everything is done correctly.