Our primary goal is to retain as much equity in our properties as possible while leveraging outside capital to scale faster.Proposed Investment Structure:Investors contribute 30% of the purchase price and 30% of furnishing/rehab costs.Our LLC secures a new purchase loan in its name only, taking on 100% of the debt.This structure allows us to maintain 70% ownership of the property.Properties will be actively managed to maximize returns, likely achieving higher upside than long-term rentals.Proposed Compensation for Investors:6% preferred return annually.After the preferred return is met, profits are split 75/25 (with investors receiving 75% of profits on their portion of ownership).Profit Calculation:Revenue – Operating ExpensesExcludes mortgage principal & interest, as our LLC assumes full responsibility for the loan.Looking for Feedback:Is this structure fair and attractive to investors while ensuring long-term alignment? 

Some investors received a note this week saying he filed for Chapter 7 bankruptcy.He also has a new eviction on his record after refusing to leave a property he was renting.Even after multiple formal complaints to the RE board about his fraudulent activity, he somehow still has his license and active home listings.Posting this update so hopefully anyone looking to work with him, now or in the future, can see the type of person he is.

That's what I mean when I say fraudulent folks coming into this space.This did not materialize as much as I thought and I think it was cause everyone anticipated a rate cut, thus such a fund wouldn't need to be made.

On the lenders title policy is an exception "Rights of claims of parties in possession not shown by the Public Records" which Sally was in possession of the property at the sale and the seller was basically fraudulent.

We had two fraudulent bookings back to back and got no support.

Many screening services only pull basic credit reports, but that doesn’t give you the full picture.For the best results, choose a screening service that includes identity verification, eviction history, criminal records, and income verification reports, rather than relying solely on a credit score and collecting pay stubs and bank statements, as fraudulent documents are becoming more common.Also, keep in mind that judgments and liens no longer appear on credit reports, so choosing a service that pulls these separately can help spot hidden risks.

We are also reviewing a company that can use it to scan bank statements and tax retturns to quickly sort where money is spent and if documents are fraudulent.

It is sad that no enforcement can even go after their fraudulent business practices. 

Is RE fraudulent or a scam?

Unless it turns out to be scam or fraudulent