Updated almost 7 years ago on .
HELP ! How to bring on partners the correct way
So I am at the point where people are looking to give me money to invest but I'm not sure the best way to go about it. I have a few different directions I was thinking.
1. They invest as a loan and I provide a 10% return. Using this method, I was told to just use a promissory note. Once they sign this, is there a special way to receive the money or is it just a wire/transfer to bank account ? Also, is this the best method to accept a loan ?
2. 50/50 Partner on a house. I'm trying to avoid having to create and manage another llc/multiple llc's if multiple people will be investing. For ex: If I get 3 individual properties, I was thinking on partnering with 1 person each on each property to only have to split it two ways. I don't want to create 3 llc's for the 3 people. What is the best way to 50/50 with someone and avoid this ? I was thinking to put the loan in an llc I already have, and either create a joint venture agreement between that person and I, or add them to the deed somehow.
Can anyone provide their experience and how they handled these things ?