Joint Venture Aggrement or SEC registration

[Pavlos Kasselouris]

What route do you think makes more sense to bring together private capital for flips?

Would a simple JVA would suffice at this early point or SEC regulations would make this more complicated, and expensive?

[Michael Le]

It's not a matter of apartments or single family residential deals. The question is whether or not all parties will be actively involved in the deal (JV/partnership) or if there will be one lead/sponsor/general partner and the rest will be passive investors with expectations of return on their money (syndication). Anytime you're raising money and making all the decisions and doing the work then it should be a syndication. The exception (according to previous SEC attorney's post here on BP) is if you raised that from a single person.