Investor · Columbus, OH · Member since 2014 · 11 posts · 3 votes
Hi all! I've built up some experience completing flips and buying rental units on my own – and now would like to start bringing some other investors into the fold to secure deals on a more consistent basis. Outside of the investment philosophy and business plan ... I could use some help understanding how to setup the partnership and the "fund" to hold the investors money, what legal things need to be in place, etc.
Imagine a scenario where I have 3 - 5 investors wanting to invest into a potential project of mine. Where do I start?
@Tyler Durbin have you ever looked at private debt (hard/private money) to fund your flips? Typically, if you run a "cost of capital" calculation private debt will be less expensive than equity partners. On longer term holds you could use the same capital and then refinance with bank debt once you've created enough value to payoff the higher cost debt.
I used this method to BRRR (and some flips) my first several smaller mfam deals.