Updated almost 5 years ago on . Most recent reply
Real Estate Investment Fund Help
I am working on a new construction project to build a new home or two on our first project together as a group of 3-4. 3 partners have a quite a bit of experience on their own real estate projects and have portfolios.
I am bringing everyone together for this and also have several investors that may be part of the project or part of the next, so I am starting a fund to build 10 of the same model home in the same target market. Initially it is about 450k cost with 850k sale price. Building 10 of these with 20% down + a buffer puts an initial raise at $1million for a fund.
The question is- if you have been a part of a real estate fund, what is the best way to structure something like this? I prefer to package 10 new construction homes to build and sell in one fund raise, and then begin when the fund matures because I may already have it funded, or can within 6 months or less if some interested parties don't find it to be the right fit. I assume this is better than raising for 10 single projects. Can anyone with experience or part of a fund like this, or anyone that has raised a fund like this offer advice on the best structure for new construction build and sale?