Sharing a property's equity

[Account Closed]

I have been thinking of an idea. Say you buy a house and rehab for $80,000. Its market value rises to $100,000.

Can the owner offer partners a buy-in valuing the property at $90,000? More than he spent on purchase+rehab, less than the current market price. If 8 investors chip in with $10,000, he has his money back, plus equity in the house. Any sale or rent money is only a plus for him. If he rinses and repeats this process, he can posses equities in several properties, with a small amount of money. He can set the goal before the partners buy in, e.g. automatic sale once they find a buyer at a set price, or rent incomes to be split evenly for 5 years, etc.

For the other investors, they can potentially earn good returns on real estate with a small amount of money. Or make it like share percentages and sell off their portions to other speculators etc. Sort of like notes.

I am not experienced in real estate so I probably oversimplify. What do you all think?