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:
- How did you structure your business (S Corp, LLC, Limited Partnership)?
- How did you determine the price point for your purchases?
- 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?
- What role does each investor play in your business?
- 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**
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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