Using Friends/Family Money to Grow STR Business

[Ashley Rothacker]

Hello! We have some friends and family that are looking to invest in our STR real estate business. They would strictly be investors and we will maintain all the work (i.e. finding and purchasing the property, then managing the STR business) and charge a management fee. The loan will be in our names and the investors (friends and family) will receive a payout every month.

We are basically trying to figure out how to formalize using their money to purchase properties. Would the best route be to setup a real estate fund under an entity?

Any advice is appreciated, thanks!