Developer · Philadelphia, PA · Member since 2019 · 29 posts · 8 votes
Hello BP family !
My Business Partner and I have recently purchased a three family property in Newark, NJ.
Since then we have been working multiple hours everyday learning the craft of pooling private money and Structuring syndication like deals.
We have identified our target market and cultivating a team in our target area.(Philly)
Our Focus:
C class 20 - 30 Units Value Add Deals.
A few of my close high networth friends have approached me with interest in investing in our upcoming deal.
I haven’t completely mastered the craft of Structuring private money deals. && I don’t want to risk losing their interest. I believe I should at least offer them a sample deal (which I am learning)of what could be beneficial to them in the near future(1- 2 months when we find a deal)
Are there any suggestions or things I should mention or look out for in various initial interactions to cultivate a strong investor list.
Apartment Syndicator · Charleston, SC · Member since 2016 · 973 posts · 728 votes
6y
@Markus Jackson you should review other investment opportunities to see how groups are structuring deals. If you only have a few investors you might want to consider a Joint Venture (JV) versus a syndication but speak to an attorney before making a decision
Attorney · Los Angeles, CA · Member since 2016 · 284 posts · 314 votes
6y
There seem to be a lot of suggestions to "JV"--I just want to point out that a JV is when you are bringing on an active business partner, and not a passive investor.
It sounds like you have a good growth plan. Inventory is very tough these days. Curate your network and come up with a number of people who would trust you enough to fund the first deal. The first one is the hardest from a track record perspective (for obvious reasons).
Solicit feedback, take copious notes, save pictures and you will be able to build on this as your track record. Even a properly communicated failure can build trust.