Building a Fund - need help with the numbers and structure

[Eric Michiels]

Hi, I have the opportunity to build a fund with $2M from friends to invest in Real Estate. Mostly in Fix and flips. 

My plan was to suggest these numbers:

1. 1. A fee of $8K to manage the operation.
2. 2. 30% of the profits go to me. 
3. 3. 70% of the profits go to the investors. 

If we make $35K per house (average), and we are able to flip 100 houses in 2022, they would make over $2,3 Million back. We would work with Hard money to finance the purchases and rehab. 

I'm I wrong? I'm I missing something? (FYI I flip houses right now with different LLC with each partner and make 50% on each deal, we make average $35K on each flip, it's just too complicated to manage multiple LLC's)

Also if you have experience in this field, is a fund an LLC? How would I legally create a Fund, what legal structure would that be?

Thank you,

Eric