Hypothetical questions:
Let's say you have 10 people interested in rental property investment. Each have some experience in the market, but no more than 1 or 2 properties a piece. The person's are not related and in fact not everyone knows every one else. Not one person in the group has a strong relationship with anyone. Each person has $100,000 they would like to invest in the group. The primary goal would be to buy cash flow positive rental properties using financing and leverage the group buying power when it came to management, transaction fees and maintenance. The properties would be owned by the group, company or organization. Returns would be reinvested into additional properties for a term of 15 years. After 15 years, returns would be paid to the group in some form.
What business structure would you recommend?
What specific terms would you suggest in the agreement among parties? (I know you aren't lawyer or at least aren't acting as one on TexAgs)
Other than an accountant, lawyer, and real estate agent, are there other knowledge workers you would employ?
What are the biggest hurdles and pitfalls do you see?
Let's say you have 10 people interested in rental property investment. Each have some experience in the market, but no more than 1 or 2 properties a piece. The person's are not related and in fact not everyone knows every one else. Not one person in the group has a strong relationship with anyone. Each person has $100,000 they would like to invest in the group. The primary goal would be to buy cash flow positive rental properties using financing and leverage the group buying power when it came to management, transaction fees and maintenance. The properties would be owned by the group, company or organization. Returns would be reinvested into additional properties for a term of 15 years. After 15 years, returns would be paid to the group in some form.
What business structure would you recommend?
What specific terms would you suggest in the agreement among parties? (I know you aren't lawyer or at least aren't acting as one on TexAgs)
Other than an accountant, lawyer, and real estate agent, are there other knowledge workers you would employ?
What are the biggest hurdles and pitfalls do you see?