How do properly structing taking money from an investor

Question

Hello BP!

I have a few friends and family that are interested in investing in my upcoming deals. I was wondering how this works and how to structure it? Should I have them wire the money to my savings then use it when it is seasoned?

Thanks!

Anthony Zotto

Account Closed · Answer

The proper way is to do a Joint Venture, they become your lender. They wire to your business account. That is very important for tax reasons. The IRS doesn't like co-mingling of funds, it also helps keep the records straight and ultimately can be the difference between keeping you out of trouble with the law, the IRS and your beloved family and friends.Then when you find a deal, you write checks (or wire) only from the business account for business things. And you keep meticulous records.

Anthony Zotto · Answer

Great thanks! Same thing goes if they are funding the down payment?