How Do You Structure Your Real Estate Syndications?

Question

For those raising capital, are you using a traditional LP/GP model, SPVs, or another structure? What’s worked best for you, and why? Let’s discuss.

Stuart Udis · Answer

More context is necessary. The best structure will be dependent on the transaction type, GP's skills & contribution to the transaction as well as the LP's contributuion and objectives. For illustration purposes, the structure tha's used for a GP who also self performs construction and is building for-sale single family homes is going to be different than the GP who outsources construction and builds large apartment buildings or develops a last mile industrial center that has a tenant commitment in place. My advice is to narrow in and weigh structures when comparing apples to apples, not apples to oranges.

Chris Seveney · Answer

We are an open-ended fund so we did our model as a corporation and investors invest within the company. We kept it very simple from a fund standpoint so we do not have multiple entities etc, we have one. For a single asset syndication other models may fit better but for what we are doing this was the best model - thus why its important to understand and speak to an auditor, CPA and attorney to know what is the best strategy.

Robert Ellis · Answer

agreed great advice Stuart

How Do You Structure Your Real Estate Syndications?

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