More than 2 friends financing a rental

[Michael Maslanka]

So, I finally have multiple friends and myself ready to pull the trigger and didn’t realize we may be setting ourselves up for an SEC violation. For anyone who has had more than 2 friends and or family buy a rental, how did you structure the deal to avoid violating securities law?

Are all people on title?

LLC?

All on the mortgage?

Equal equity?

Defined duties…etc?

Thanks for any info. And yeah I will reach out to a lawyer and cpa

[Allan Smith]

Not so. The partnership agreement engages conversations that set expectations so that you don't end up in a courtroom. only sometimes do they become legal documents.

partnerships can be tough but my business thrives on them. I have several. Only one has ended, and it was because my partners wanted out. We simply sold the asset and divided the profits. That's a win win in my book.