The arrangement is a common real estate transaction setup. However in this kind of transaction, the investors have to rely on the management company. The main driver is the management company. They search, negotiate the deal and later they will manage the property. They will become the managing member of the LLC and make all the decisions for the LLC. It will be no small feat for OLd Wolf to convince the investors to trust the management company. If Old Wolf is not willing to extend put his own good faith behind the company, it will be an even harder sell.
