Starting a Small Group to Invest Together: $3-20K per person

[Mark Scarola]

It's tough to get started when you're only one person and have limited funds. The solution is simple - find a partner. Of course finding someone locally can be a challenge.

With that said, let me know if you'd be interested in this idea. If there's enough interest, we'll make it happen.

We put together a group of 5-10 investors and pool our money into a new LLC. Investors can be from anywhere in the United States and would share in the profits/losses in an amount relative to their contribution. Investments could start as low as $3000 and go up as high as $20,000.

We would then use those funds to flip a house. We would all have a chance to vote on a prospective property (yes or no) and to contribute in some way. Everyone would be involved or at least have access to what's happening, step by step. We would focus on low-income areas so that we're not overextending ourselves. It's a chance to gain experience, learn from one another, diversify your investments, spread out your risk, and make a profit. Once the deal is complete we can invest together again or go our separate ways.

[Marcus Auerbach]

Sorry, I dont like to be the nee-sayer here, but this sounds like a recepie for desaster!

A bunch of people that vote for every decision on a flip, no one has experience, but everyone has an opinion and basically his entire savings on the line. 

Ugh, that can get ugly quickly.

Maybe a better way is to find one person to run the ship (captain) with experience and a track record and put him in charge, at least for the many day to day decisions. There are so many little ones to make and most of them have no right or wrong answer, but are just a judgement call. A vote system will take way too long and will just get people into arguments. Big decision can be voted, but sometimes you also have to be quick, like when you make an offer or get a counter etc. Tough one. And be sure to follow protocoll like Dawn said.

Sorry guys, I dont mean to be negative nelly here, but talk to people who did partnerships with one person, and they will tell you it was not easy, even with a good friend. I just dont want a good thing to end bad, please give it some thought.