Looking for experienced advice to form investment partnership

Manchester, New Hampshire
Goals, Business Plans & Entities
4yFollow

Looking for experienced advice to form investment partnership

Chris Luksha
Contractor · Jaffrey, NH · Member since 2016 · 102 posts · 14 votes

Hi Everyone,

Recently I had an idea and wanted to see if anyone has done something like this and could offer some startup advice. Caveat - I am truly at the idea stage - This post is the first of my legwork.

I have a handful of friends and business acquaintances who are NOT accredited investors however would like to invest. I would like to gather them together to create an LLC to fund the purchase or building of small multifamily housing. (2-4 units)

What my hopes are, are to find:

1. Someone who has done it and can mentor (with or without buy in themselves,) or at least give some starting direction

2. An Attorney who has experience in helping with this kind of venture to be of assistance, also paid or with buy in

3. An Accountant who has experience in helping with this kind of venture to be of assistance, also paid or with buy in

I know that many things like this require an existing relationship before can get unaccredited people to buy in so the items above I cannot expect anyone to offer their assistance in exchange for a buy in until we have gotten to know one another.  Also, yes, I am ignorant in many areas of this and I will be reading other posts as I can find them, so please don't bother beating me up with comments that say do my work before I ask my questions. Asking questions is how I prefer to START my work. There are bound to be many more questions should this gather momentum so I wanted to started the thread now.

Thank you for those who can help and choose to. I appreciate it. 

Blessings,

Chris

0Reply
10 views

2 Replies

Jump to latestLatest
  • Chris SeveneyBusiness Member
    Moderator
    Investor · VA · Member since 2015 · 21k+ posts · 19k+ votes
    4y

    @Chris Luksha

    Are they going to be active in the business or passive? If passive then you would want to either do crowdfunding or a 506b, if active then you could do it most likely without the 506b or CF.

    I have an attorney who has done all my syndications and happy to connect him to you.

    Have done a 506b, 4 506c’s and a reg a+ with him.

    7e investments53 Reviews
    WebsiteView Page
    0Reply
  • Chris Luksha
    OP
    Contractor · Jaffrey, NH · Member since 2016 · 102 posts · 14 votes
    4y

    @Chris Seveney

    Thank you for the response. I'm trying to do a little digging into what you posted there.  I want to understand a little more before asking the next question.

    So far my basics are:

    Crowdfunding has to be done through another organization, must be under $5 mil, has a limit of non accredited investors in a 12 month period and still requires filing with the SEC.

    506(b) can have up to 35 non accredited people - Great, I can't publicize to the general public, a few other rules should an accredited investor want in that I am still trying to hash out) and in general does not need to be registered with the SEC.

    506(c) must use accredited investors and that one item tells me to look no further into this one for now.

    I am still digging into Reg A but it looks promising as does the 506b

    Thank you.  I will be back with more questions and would love to get in contact with your attorney at some point.

    Blessings,

    Chris

    0Reply
Join the conversationCreate a free account to reply, vote on answers and follow this thread.
Log InJoin for Free