New investor here: I want to buy a property, cannot fund it myself, and have 3 other potential investors. What is the best way to structure this? How do these investors get paid out? Do we set up a company? Where can we get more info on this?
I just listened to the latest BP podcast interview with Grant Cardone and started thinking about Grant's concept of "buying outside of my budget." Anyone have any experience with this?
In summary: explain like I'm 5 please.
Full disclosure: I haven't listened to that podcast yet. However, I don't like a ton of risk. I want to be sure I can pay for my mortgage if I can't rent my property. After a couple of years of no problem keeping renters, I'm okay with moving on to another place, but I only have 3 right now and 1 is paid for, so if I HAD to, I COULD make all my mortgage payments. Though I'm looking at buying again, so now I won't be able to, but I've had no problem keeping renters and I've had my newest places (duplexes) for 8 years. (I was busy with my military career and didn't invest when I could have sooner.)
As for your first paragraph of questions, I'm not the best person to ask. I'm not exactly thrilled with the idea of having partners, so I'd suggest reading Brandon Turner's book about low and no money down investing. However, many people invest with partners and it goes very well. See if there's a podcast on this. Also, search for words on here like "partner" or "partnership" or something. I would think you'd need an LLC, but I could be wrong. (Maybe search to LLC as well. ;-) ) Whatever you do, have a real estate lawyer draw up the paperwork so it's right!
Good luck! :-D