Lender · Cary, NC · Member since 2016 · 82 posts · 13 votes
Hey BP community
I need advice on creative real estate pool
I would like to know the best way of going about starting an invest pool with close friends and family.
I'm already LLC do I have to register with the SEC really don't want to is there any way I can raise funds with close family and friends without doing the SEC stuff.
I have close family and friends who are ready to invest I just want to make sure the numbers are correct for them and that they will get their return back.
The property is an 8plex for 265,000
Investor · Willow Spring, NC · Member since 2009 · 5k+ posts · 3k+ votes
9y
An NC multi-member LLC is the way to go, IMO. Just make sure you have a good operating agreement and follow the LLC processes. An 8-plex for $265K. Sounds like it may not be in Wake county.
Of course an alternative to an LLC is to have members pool their resources together in their own LLC... then for that single LLC to lend the money to you. Then they could, for instance, have their own investment club, via the LLC, and lend (or buy) property for other folks as well. Lots of flexibility in LLCs. The key is defining the operating agreement in enough detail to make sure it operates the way you think it should. I'd recommend an attorney look things over for you once you have an idea of what you want to do.