Property Manager · Newport Beach, CA · Member since 2016 · 15 posts · 2 votes
I am looking at a 6 unit multi-family property in my area in Orange County California. I am looking to partner up with 2 other investors to make the deal happen. This would be a syndicated deal correct? Is all of the legal paperwork necessary? Is there another way to make it happen? I know both of the investors well. Any thoughts or insights would be so helpful. Thanks.
Rental Property Investor · SE Michigan · Member since 2014 · 4k+ posts · 6k+ votes
9y
If those partners would be giving you money and you are doing all the work, then you have created a security. You will want to have an SEC attorney write up a PPM for you. For a small deal, you are looking at about $10K.
Rental Property Investor · SE Michigan · Member since 2014 · 4k+ posts · 6k+ votes
9y
If those partners would be giving you money and you are doing all the work, then you have created a security. You will want to have an SEC attorney write up a PPM for you. For a small deal, you are looking at about $10K.
Hello Scott, you will definitely want to make everything legal. You'll most likely create an entity where the property is located, with everyone involved in the equity gathering as members of that LLC. If you are doing most if not all of the work, you'll be the member manager of that LLC. All of the terms are stated in the operating agreement of that LLC. Depending if your partners are accredited investors or not, you'll need to also create PPM with a qualified attorney. Good luck. I am Orange.