investor return payout

[Pat C.]

Hello,

I am inquiring about the correct way to pay out to investors for recording and tax purposes. 

Ex: several investors put up initial contribution, property help for 6 months, value add, sold for net profit.

Now I want to return initial capital plus returns. Do I issue 1099 on the profits only? I've heard several strategies, but I'm looking for the simplest method or one that benefits the investor the most.

Thanks for any suggestions!