JV or Syndication

[Paul Wheeler]

Hello Steven,
Possibly premature but one method of building a real estate portfolio with little capital and a lack of credit is a JV or syndication. Depending on geographic location and experience you can put together 1 or the other depending on how much funds are needed for downstroke monies and how the control will be disbursed.

Typically on commercial/multi family properties with little capital needed a JV can be formed with a minimal amount of people and equal control for all parties. Make sure to consult with an attorney to avoid securities pitfalls.

On larger deals commercial syndication utilizing a reg D 506 can aid in a capital raise but again it is critical to involve a securities attorney as the liability can be high.

Both of these areas require experience and I would recommend finding a group to learn from.

Lastly I would recommend focusing on repairing your credit at it is a vital tool in obtaining leverage.

Best of luck,
Paul