Rental Property Investor · Bronx, NY · Member since 2008 · 144 posts · 64 votes
This is a three part question.... How would you struture a deal with 2-4 people who are willing to put money into it? 2. Would this be a syndication or just a partnership? 3. If a partnership what kind of partnership? 4. What kind of business entity should be formed? Thank you for your help in advance.
I think that this really depends on the amount of involvement and risk the people in the deal want.
If they are all professionals, with understanding and they get along well - you can create a simple partnership where all decision making can be done by voting. There is also a question of financing, do you have financing? do you want financing? who will sign the note?
If you have partners that want to be passive, you want to use financing, and you want to avoid a complex diction making process (4 people agreeing on something can be complex), you may need to create a syndication.