Posted by Cre on February 05, 2002 at 12:03:54:
Thanks Jim,
I’ll check around my city for the right attorney, my time is limited because the sale is in two weeks, so if you can, say a prayer for me!!!
IS THIS LEGAL??? - Posted by Cre B
Posted by Cre B on February 05, 2002 at 11:12:55:
I’m attending a tax sale in a few weeks and I’ve come across one family member and two close friends who have 5,000 a piece that they’d like to invest. They’re not interested in REI at all. They trust me and would just like to make a decent profit, more than what their money would make sitting in the bank etc.
The question is, how do I set this up and is this legal? Do I compile everyone’s money and purchase a prop at the sale, sell it and then give them a fair return for their investment as well as pay myself for all of the hard work involved. Do I borrow the money and pay them a little more interest than the bank? I don’t want this to get too complicated, but using their money to help me make money sounds like a great idea. Also, is there a standard contract available for this type of situation.
Thank you in advance,
Cre
Re: IS THIS LEGAL??? - Posted by brian
Posted by brian on February 05, 2002 at 13:46:20:
Try using a REIT to solve this problem
it is a real estate investment trust that you would operate.
Re: IS THIS LEGAL??? - Posted by jim
Posted by jim on February 05, 2002 at 11:58:19:
Yes, it is legal, and it could be very profitable for both you and them. I would speak with the real estate attorney that you use for the tax sale to find out how you should set this up.