Classifying Rental Property Investments

[James Hinkle]

Greetings,

I have recently started up my own LLC and I'm having a lot of trouble with classifying the money that comes into my company. My dream model is to build up to something that is similar to Fundrise and RealtyMogul. In short, I want to raise capital from independent investors and leverage that capital to invest in rental properties and distribute the profits to those independent investors. My quandary is that I do not wish to give these investors equity in my company, rather I want to give them equity in the property that I invest their capital into.

When receiving such investments how to I classify that capital coming in and/or what type of form(s) do I need to issue to the investor? 

Respectfully,

James Hinkle