How do I start a real estate investment fund?
Hello BP!
I own an LLC with a business partner doing residential filps. We are looking into opening up a real estate investment fund to raise private capital. We figured we could save money by opening up investment funds, than paying a lot of interests using a hard money lender. Hard Money Lenders cost about 12% per year, while our Investment Funds can pay a range of 7 - 12% depending on risks.
I've never done this before, but I'm hoping someone has in this forum has. How do I structure my investment fund? What are the typical items that we need to cover? Does anyone have any resource for me, on how to make this happen?
I'm thinking we'd have two options - one secured, and one unsecured. I'm curious to know how others have structured their investment funds, equity partners, withdrawing their funds (is there penalty if they want out? etc.)
Can anyone point me in the right direction how we can make this happen! Thanks in advance BP!