Private investor funds - Posted by Major

Posted by Clint Coons on October 25, 2003 at 11:18:00:

Major,

I recommend that you use an LLC managed by a corporation. Now the more important issues are the legal implications of borrowing money from multiple investors. The deals must be strucuted as to not violated blue sky laws or federal security issues. I have a client who ended up on the wrong side of the law in a similiar situation because he failed to structure his loans and investments appropiately.

Very truly yours,

Clint Coons
Anderson Law Group, PLLC
www.alglaw.com

Private investor funds - Posted by Major

Posted by Major on October 25, 2003 at 01:19:18:

I have been investing in real estate for the past year. I have purchased and sold three properties so far. I have used hard money and conventional loans to purchase properties before. Due to my success in investing, I have people interested in loaning/investing their money in my real estate business. What type of entity would be best for me to use?
Also, I would like to keep each investors funds in their own individual account where they can electronically transfer funds to my account quickly after approval to use their funds. This way they keep control of their own money until I need it. I would establish a minimum amount to be kept in each account plus I would deposit interest and principal payments. Are there any legal issues or licensing issues I should worry about?