Simple fund for Cash-only Flips

[David Smith]

Hi All,

A few of my trusted friends and I are planning to create a fund to flip homes. All purchases and sales will be cash only. Would the best and simplest type of structure be a joint venture? Anyone here who has done this before?

[Evan Polaski]

@David Smith, as noted consult an attorney.  Typically the threshold of creating a joint venture versus a syndication is based on the control all partners have.  If your trusted friends are simply putting money in and trusting you to do the rest, meaning they are passive, you are selling securities and will need a securities attorney.  If they all have say in assets, sale price, rehab budget, etc then typically a simple partnership is adequate.