A few questions on syndicates for raising funds?
If I'm trying to purchase a specific commercial property, I've seen that one method of raising funds could be a syndicate. My questions are...
1. Since I need a specific property, isn't it likely that someone else would buy it by the time I can raise the funds? Especially since I've never done this before?
2. What do I give the investors in return? Do I just give them interest like it's a loan? Or do they share in the profits as well?
3. Do they actually get any ownership of the company that owns the property? I would hope not.
4. How is their investment secured? Especially if there is any real bank loan involved. Obviously I can't secure both the bank loan and the syndicate investors with the same property. Do they have any guarantee at all?