Sounds like you need advice form a cpa familiar with real estate investments.

LOL You are starting a "fund".A popular SEC lawyer that I've heard speak, has posted threads here on BP is Jillian Sidoti: http://www.jilliansidoti.com/She's the cheapest I've heard for setting up your "fund" LLC, PPM, subscription agreement, operating agreement, etc.Just google Jillian and read her stuff on the net.Just mentioning, if your group plans on never soliciting funds from other folks you currently don't know, you could form a partnership or a per project JV.

I don't think there are too many investors who are going to JV or form a GP to buy houses.

However, to start, I always recommend that you speak with some of the top REO brokers in your area (when I say top, I mean those who regularly have 20+ reo listings each month), form a relationship with them, and show them how you will make THEM money!

Finding an investor can be tough since there are so many note-dogs out there, many claim to be the investor but they just form a chain to the real buyer.

the cool part in the 12 states for home owners is that there is no Deficiancy judgement allowed on a purchase money loan form a third party.. the sole remedy of the lender is the property. 

@Josh Prince I suppose the moral of the story is just not to buy based on the pro-forma or market rent, but only what is currently being paid in rent. 

Gary D. 5 months ago I solid one of my properties on a busy double yellow street across form a ambulance station...today I'm trying to sell a better property for less on a better street.... and no bites....

Just curious though, what is the additional benefits that you are alluding to that allows for your mother to form a new LLC and get some form of credit to be used as income supplement?

To form a partnership or sole proprietor business issue him W2?