How to Structure a Small Group Raise for New Construction

[Desmond Pressey]

Hi BP!

I’m working on a new construction project that I plan to raise capital for, let’s say about $300k to cover what the loan won’t. I’m trying to figure out the right business structure to move forward with. There will likely be just 3 members that are active in the deal and the rest will be passive investors. I’m hoping to structure it in a way that works for providing a return on the sell of the new construction in the most tax advantaged way possible. I’ve been reading on LLCs, Limited Partnerships, etc, and can’t seem to get a clear indication of which direction to go in.

I’d love to hear your thoughts!

Many thanks,

Desmond 

[Scott Wolf]

@Desmond Pressey, you may need to speak with a syndication attorney.  I have a client that has done a deal like this before.  If you'd like, I can see if he's willing to chat with you.