Managing Gap Funding for a Private Investor

[Kalonji Mitchell]

I am a Chicago real estate investor and hard money broker. I've built a relationship with several private investors. One of which is interested in my ability to manage a small part of his capital to be utilized for Gap Funding for Chicago real estate projects. We are at the beginning stages of negotiating it's use. My focus will be to take care of his money. Does anyone have any ideas on reasonable terms? Again, my focus is to make sure that I care for his capital and create a healthy ROI.

Thanks.

[Bill Gulley]

Being in any entity with other investors does not protect their investment, due diligence does, if you fund a pig they lose money. Being in an entity without any of your own capital places you in a management position with respect to fund administration, you need a license!

Exception if the investor is related to, family, or a court appointed trustee.

Regardless of how good you might be, if your operation is not compliant you can be subject to loans being denied losing all your money as well as fines, that isn't close to protecting an investor. 

If your investor trusts you, that's great, but both of you should see a finance attorney before you begin opening doors, I'm sure he can afford a small bill to protect himself and you. :)