I've successfully bought a few foreclosures over the past few years and now have some interest from investors in some sort of fund. Does anyone know of any information on how to set up something like this? What is the best vehicle to use?
1. There'd be 4 or 5 investors (I'd be one). For a total initial investment of around $1.75M.
2. I'd be buying & renting out the properties & would want to be compensated for that. I'd also probably decide how much income was paid out in 'dividends' & how much was reinvested.

The fund wouldn't be particularly liquid so it would need to clearly state:
1. How and under what conditions can investors cash out
2. How and under what conditions new investors can buy in

This won't be based in the North America, but I can probably adapt something available in North America.

TIA

I'm not aware of any information on this topic. Probably what I'd do is contact some of the companies that specialize in tenancy in common stuff and talk to them about how they structure their deals.

General partnershp with tenancy in common ownership will allow for the most pass-through tax savings.

i'm not optimistic about your chances of success if you are asking on 2p2 instead of consulting a lawyer in your local jurisdiction.

IMO this is a wrong-headed observation. I think that its a natural path to go to cheap/free resources where you think you can find somewhat competent information before going to more expensive resources. That makes a lot more sense to me. There are several regular contributors on this forum that are professional RE investors, and several more that are lawyers. I think this is a great venue to start asking questions such as the OP's.

Further, I think that there is a overarching sense of arrogance on the 2p2 forums that is annoying to me. Its almost never, "I disagree with you and here is why". Its usually "You're an idiot, end of post". That bugs me and causes constant bickering here. I'm not saying you're doing it, but I think your post is in that general frame.

Aside from xspex's response -which I agree with - I've consistently got better replies on this forum than other seemingly more related forums. They tend to dissolve into spam (though recommendations would be appreciated).

I'm in Japan, my investors are North American, they will want a English language contract (it would be valid under Japanese law) . I'd then run it by a Japanese real estate 'scrivener'. Consulting a Japanese lawyer is not an option.

Criticizing me is certainly fair game but I still think what I said is pretty reasonable. The jurisdiction was originally unspecified but non-US, so I think that whatever is written here about structure simply isn't worth much compared to talking to a lawyer. And obviously you're going to need to talk to a lawyer anyway.

Typical structure for a private real estate fund in the U.S. would be either a limited partnership (with a corporate GP) or a limited liability company.