buying investments like stocks
I've been brainstorming as of late on how to come up with cash for the 20% needed by banks for investing.
I thought the following might be a good ideal, hopefully someone has done this before and can shoot holes in my ideal.
You identify a property, which you purchase at a wholesale price that way there is equity right off the bat. My ideal is set the property up like a corporation with investors.
For example you have a 15 apt complex you want to purchase, but need a $100,000 for the 20% down. You would sell rights (stocks) to an investor who would put up the 20%, who would receive a certain return or maybe 10% back after 3 years.
Obviously you would own the majority of the stock, that way you can own the property and are in control of it.
My question is has anyone ever done this? If so is it legal? I mean corporations always sell stocks to raise money or start a IPO. Let me know what you think. Thanks