starting a hedge fund for down payment.

[Colby Miles]

I've heard of Ken McElroy using hedge funds for the downpayment on his apartment buildings, but in his book it doesn't specify a lot on how to get one started.

I would like to invest in apartment buildings that need renovating. renovate them and rent them out for passive income, but I know things will move much faster If I can get a hedge fund to put on the down payment.

How many successful projects do you think I would need under my belt before people would be interested in investing in my hedge funds for this type of income property?

[Ned Carey]

@Colby Miles perhaps the term you are looking for is a syndication. This is common in the commercial real estate world.

The concept is simple. You find a great deal, other investors put up all the money or at least the money for the down payment. You take a cut of the ownership for putting the whole thing together.

Now the concept is simple, pulling it off is not. There are a LOT of regulations when it comes to raising this kind of money. You are not likely to find substantial money to do a big commercial deal until you have some experience.

There are threads here in the commercial forum about syndications, and securities laws. Check out some of the posts by @Brian Burke or @Bryan Hancock