WANTED: Creative Financing Advice for Beginner Investor!
Dear Bigger Pockets Community,
I'm new to the World of creative financing, but I'm excited to get started.
In theory, I would incorporate and find investors to fund the purchase of a single family home, in Massachusetts, as a rental property.
My goal would be to raise 50k. Utilizing the funds raised I would cover the 20% down payment and then I would plan on using a conventional loan from a lender. The LLC would be able to pay my investors 10% annually. Of course, the goal would be to cover the interest on the loans from both the investors and the bank, with cash flow as a result.
I'm well aware that what seems good in theory can soon dissolve in practice. Has anyone run into any legal issues, corporate law, or tax trouble with this model?
What methods are members using to raise capital?
I would really appreciate it if anyone would be willing to reply with advice, book recommendations, or even links to forums on this topic for us beginners.
Please keep in mind that I'm still new to real estate investing and I'm currently in the education phase.
Thank you