Rental Property Investor · Richmond, VA · Member since 2017 · 102 posts · 28 votes
I've been investing for 7+ years and built a decent rental portfolio in VA and NC with a partner. That partner and I still have a great relationship but are also now doing deals on our own while keeping everything we own together.
I am in need of operational capital while I start my new separate company on my own as I don't want to use funds that I have in my other business with my partner. How would you recommend that I do this? I'm seeking about 100k to use for marketing, operations while I'm doing new deals myself. Thx!
Lender · Santa Monica, CA · Member since 2023 · 63 posts · 26 votes
2y
Yes- given I work for a direct lender I have first hand experience of being involved with setting up a fund. Strongly suggest contacting a lawyer and setting up a Cayman Island feeder fund. The benefits with this include flexibility and tax exemptions on income. If you would like to discuss further in-depth please contact me. Thank you.
I do mostly long term holds and flips. My main need upfront operational + marketing capital.
I would offer something creative like upfront cost....in exchange for equity in the flips.....and partnership in the leads that dont fit your criteria but still deals that you can wholesale to someone else. youre going to get leads that dont fit your criteria, what will you do with those? how can you still profit from them??? keep that in mind.
Attorney · Philadelphia · Member since 2018 · 2k+ posts · 3k+ votes
2y
You will have far more success raising capital if the capital is deployed towards the underlying real estate. Investors will be less enthusiastic about funding your operational capital. Since part of your investment strategy is flips, you may consider a pref equity structure with LP's.
I do mostly long term holds and flips. My main need upfront operational + marketing capital.
I would offer something creative like upfront cost....in exchange for equity in the flips.....and partnership in the leads that dont fit your criteria but still deals that you can wholesale to someone else. youre going to get leads that dont fit your criteria, what will you do with those? how can you still profit from them??? keep that in mind.
I do mostly long term holds and flips. My main need upfront operational + marketing capital.
I would offer something creative like upfront cost....in exchange for equity in the flips.....and partnership in the leads that dont fit your criteria but still deals that you can wholesale to someone else. youre going to get leads that dont fit your criteria, what will you do with those? how can you still profit from them??? keep that in mind.
Lender · Santa Monica, CA · Member since 2023 · 63 posts · 26 votes
2y
Yes- given I work for a direct lender I have first hand experience of being involved with setting up a fund. Strongly suggest contacting a lawyer and setting up a Cayman Island feeder fund. The benefits with this include flexibility and tax exemptions on income. If you would like to discuss further in-depth please contact me. Thank you.