Normally 1/3 each, after costs are settled.

Profts are divded after all actual costs involved. So first, all receipts must be settled. Investor 1, and even 2 and 3 may have made payments necessary (preferrably as agreed), and will be paid off.

Investor one received quid pro quo benefits by living at the site and in turn was responsible for a degree of on site presence (such as overall supervision and being on site daily). But investor 1 is entitled to receive compensation for actual trade work at a rate prearranged to. Some people would say that investor one should not get a bigger cut, and they would be right. But investor one can file a receipt for payment of actual work (such as building something, or doing certain specific measurable jobs, like laying tile, carpentry, even painting). Cleanings, supervising, worrying, running errands, grappling with issues, and being a hero do not count as tangible work, unless pre-arranged to as the "general contractor" payment.

I set it up as an LLC.

Sole Proprietor is generally a bad move in my opinion as it offers no protection of personal assets should something happen to that property.

If you want to send me an email through the system here, I'm more than happy to chat about what I've done, who I've talked to, and what contacts I've made.

If you really want to find your answer online try http://www.justanswer.com. This is a pay per question site where the questions are answered by verified industry professionals.

Once you have an idea of what you should do, I'd suggest confirming it with your local tax agent.

RWR and VNQ and IYR. Each is up about 38% ytd. Sort of a broad brush approach to picking the best. Just pick them all.

See if there are any real estate investment groups in your town. Google it.

Then go to yahoo groups, msn groups and google groups and search for real estate investment groups in your community.

Find out when they meet and go sit in on the meetings. Don't discuss your plans until you know who you're dealing with. You're there to learn first, network second, and do business third.

Your goal is to build your team (investors – contractors – etc)

Now an investment fund would give the idea of a mutual fund. A lot of time and red tape involved with selling stock on the market. This would also cost you the start up and leave nothing for investing.

HOWEVER…as legalities vary from state to state on private investors, I think you really need to find a good small business attorney in your area, pay him a fee, and find out the in's and out's from there. A lot to consider with investors. 1) Are they going to be silent partners? Or 2) Are they going to have an equal say in how the company is run? Would be worth the fee.to find a good business attorney to lay it all out for you. Or find a book on amazon about starting a business. Once you are using someone elses' money, the company is no longer yours exclusively, unless you have a proven track record and your investors are willing to leave you in full control.