How do you choose an investment group

[Shaquetta Chittams]

Good Afternoon,

I'm currently working with a group of individuals that are interested in starting a holding company or investment group (not sure which one yet), but I already feel like there are some red flags. Daily we're updated in a Facebook group about decisions that have been made on our behalf (i.e., type of business, appointing board members) or updates from conferences calls that don't appear to have been posted for everyone's participation. The 'decision makers' are working on drawing paperwork for how they intend to operate but I'm curious as to how this process is suppose to work because my intuition is telling me to back away. I'm also an internal auditor so I always have questions about efficiency and risks. What should I be looking for in an investment group? In your experience what have been red flags that you should have followed but didn't or you recognized early and were able to remove yourself altogether?