Starting out using other people money

[Richard T.]

Hey guys,

I'm still a newbie so be gentle. I'm about to take the first couple of steps to becoming a landlord. From reading the forums and hanging out at local investment meetups it looks like creating an LLC to protect personal assets are a MUST if I am going to go into landlording. That seems easy enough to create an LLC. But financials are tougher.

The question I have is from the LLCs if I want to partner up (or several) a home to rent out. How would I go about doing this? I have a couple of people I want to work with but I want to be fair too.

Basically what I'm asking is how do I handle his/her money in a way that everything is legal and I can "pay out" the investor/partner every month?

For example I would take my $10K and his/her $10K and use it as a down and split the rent, minus a reserve for 50% rule and other things too such as a property manager for example.

Where do I go from here?

Hopefully that explains my question.