Buying properties using multiple investors money
Hi, I am currently the owner of a construction company and a property management company. I currently buy my own house rentals and manage them through my company. Recently, I had the probably non-unique idea of reaching out to multiple investors to pool money to make a large, quick series of rental purchases. I was going to try to accumulate 2-3 million from around 30 investors including myself and make a series of purchases that I would like to personally manage for an additional percent of the profit. Ideally I would be compensated for additional repairs and upgrades through my construction company. Obviously this leads to a large potential for abuse and so this is just a soft idea thus far. My questions are as follows.
? Is there a preferred method of establishing such a fund through a particular entity?
? Is this a common strategy for accumulating properties and income?
? Does this break any particular conflict of interest laws if this is a private venture and the parties all have a clear understanding of my role in multiple aspects of the project?
I am positive I am missing alot of things as I am just in the beginning of strategizing such a concept. Perhaps others have seen or tried something like this and have some input. It would be greatly appreciated. Thanks
Chris