How to Structure a Deal? LLC with Private Investors
Hello to the Bigger Pockets Community,
I am about to purchase my first real estate investment using outside friends and family for funding. The property is a tri-plex with the mortgage being carried by a local credit union. This is a commercial loan being made to our pre-existing LLC. The loan has been approved and requires a 20% downpayment which we are obtaining from individuals that aren't members of the LLC. We would prefer not to make them members of the LLC because that would prompt the bank to require them as guarantors on the loan.
Given this information, can I get some suggestions for how I could structure the deal for the investors? It would need to be appealing to them. My only thoughts at this point are to have them make personal higher interest loans to the LLC, but is there another way to do this which might allow them to share in the long-term profits of the property?
Thanks so much for your help and ideas...
Casey Ryan Richards
Rutland, Vermont