Pooling together other peoples money, where to start!!

4 Replies

I’d like to hear from syndicators or other investors who have pooled together other peoples money. 

In searching for and talking to partners for my own investments I realized that my circle is larger than I thought it was. I now see an opportunity to pool money together from several people and start to purchase multiple homes at once, however I am not sure how to properly structure this business.

I wouldn’t be buying large apartment complexes like a syndicator (I'd need much more experience to handle large deals lie that) but I think the basics still apply. My goal is to make sure I fully understand how to structure what I am trying to accomplish. 

My questions are:

  1. How did you structure your business (S Corp, LLC, Limited Partnership)?
  2. How did you determine the price point for your purchases?
  3. Did you first locate the deal then build your team of investors or did you get each person to agree then start shopping for deals?
  4. What role does each investor play in your business?
  5. Do you have one account everyones money is held in or do you hold separate accounts?

My background is in project management and real estate sales. I’ve accumulated quite a bit of knowledge over the years and am beginning to create opportunities for myself and now, others.

** Any good books, podcast or blog posts on similar topics that I can read? Please send me the information**

1. LLC

2. Depends on how much cash you think you can raise from your investors and your personal cash available.

3. I look for money and then look for deals. I show them examples of what some deals will look like and what the returns we are looking for and then get them to say that they have "$X' available to invest. Then I go and lock up a deal and pitch it to the investors. 

4. They are silent. You are running the whole show.

5. One account.

I am in the exact same boat and was thinking of contacting a real estate lawyer for advice. I have the knowledge and many friends/family that have money to invest in RE just don’t know where start. I’m thinking of putting together a presentation and see how much money I can raise. Would like to follow this post for any advice as well. As I get information I’ll share as well.

You really should talk to a syndication attorney or go to a seminar on this. 


My concern has been, would I be breaking SEC rules by starting to raise money now or can I start building interest?

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