Investor · Rio Rancho, NM · Member since 2014 · 38 posts · 4 votes
Hello everyone,
I have a question that is probably very basic but I couldn't find an answer in the forums. Can I include land that I own as part of a syndication deal? If so, how will it be structured? Here is the scenario:
I have a 1.7 acre commercial land/lot that I would like to develop and put retail shops but I don't have the money capital to do it.
Can I create a syndicate to raise money for this project?
The land is located on a busy street with 41000 traffic count weekday and there is a lot of construction going on in the area.
I am sure I need to provide more detail so feel free to ask. Thanks!
MBA, CFP®, EA · Columbus, OH · Member since 2018 · 175 posts · 207 votes
8y
@Eddie Quispe you would be able to add the land as part of your 'contribution' to the syndication deal. Depending on the type of syndication or structure it could be used as a basis for distributions, etc. You could also do a land lease and have someone else develop the property. This is very common and much easier.
MBA, CFP®, EA · Columbus, OH · Member since 2018 · 175 posts · 207 votes
8y
@Eddie Quispe you would be able to add the land as part of your 'contribution' to the syndication deal. Depending on the type of syndication or structure it could be used as a basis for distributions, etc. You could also do a land lease and have someone else develop the property. This is very common and much easier.
I would like to do my first syndication using this land and gain some experience in syndicating. What kind of syndication structure can I use to add this land as distribution?
The bank will take this land as part of the down payment; I'll need to raise an additional 200,000.00 for rest.
Construction can take 12 to 15 months, when can the investors expect to receive any money back? Either their preferred return or split?