Investing with Limited Partners

[Mathew Davis]

Do any of you have experience investing as the general partner with limited partners? As someone with low capital, I believe a partnership where I earn equity through deal making etc. would work.

Have any of you executed deals this way?

[Jaysen Medhurst]

Hi, @Mathew Davis, what your describing is a syndication. Unless you have a track record and understand what's involved in putting together a syndication, this probably isn't a good idea for you.

• There are significant up-front costs to set up a syndication. Tens of thousands of dollars.
• Syndications are regulated by the SEC and you must be very careful to follow all the rules.
• If you have little (or no) experience, who is going to give you tens (or hundreds) of thousands of dollars? And also give up any control over the project?

A Joint Venture (JV) partnership is probably a better fit for you now. You find, negotiate, and manage the deal. Someone else brings the capital and you split equity in a way that's fair for everyone.