partnering with people to buy commercial building?

Question

Is it legal to raise funds for an apartment building? or do i need to be a syndicated investor.

My plan is to get a commercial loan, and partner up with multiple people for the 20% down payment...

Now, Not that i would..... BUTTT! Could i partner up with 20 people all putting in 1k each to fund 20k of a 100k building?

Michael Bishop · Answer

Account Closed more important than the amount of money you raise, is how active the investors are in the deal. If those investors are passive, meaning they have no role in the operations of the property and expect to collect cash flow from your managing efforts, then you're looking at syndication. If all 20 partners have a substantial role in operating and managing the property, then you're good.

Michael Bishop · Answer

Account Closed There is no definitive rule laid out by the SEC that gives you a perfectly concise answer to that question. Your best bet would be to talk to a securities attorney.

Account Closed · Answer

@Michael Bishop how much of an active role do they need? I wanted their role to be minimal

partnering with people to buy commercial building?

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