Hey guys, just wanted to poll the audience to see if there is any interest in putting money into a “Fund, LLC” then we can lend on behalf of the members to a preferred return.
Example (simple numbers):
Property purchase price: 500K
Rehab: 100K
Holding costs: 50K
Funds required: 650K
“650K Fund LLC” created
You (the investor) buy shares equal to your cash input, 150K = 23%
LLC has 1st Position Lien on the asset
Interest Only payments to the LLC for the duration of the project: 12% APR preferred return
Property Sells for $800,000: Cash out the LLC, rinse and repeat
Just some Wednesday Hump day thoughts for you guys to consider.
Could members also participate in a percentage of profit on the back end?
There could be something structured on the backend that would be in the form of points or equity. I have structures being considered for both avenues.