All Forum Posts by: Brock Mogensen

As others have mentioned - yes, a 506b structure allows for non-accredited investors. 

A 506b structure will require you to have an established relationship with the sponsor.  So you will want to start building those relationships sooner rather than later to start seeing deals. Once you are ready to look for a syndication deal, make sure to vet the sponsors.  

Building relationships with a good agent/broker is your best bet.  To start you can ask to be added to their buyer lists and that will give you some insight on what sort of deals are out there. 

@Carl N. A great book on syndication is "Best Every Apartment Syndication".  That will help you understand how the process works. 

If you want to structure it as a syndication (GP/LP structure) then you will need to decide what splits, fees, pref you want to offer. Underwriting a deal as a syndication is different that underwriting it as a sole investor. Once you add the GP fees and equity split it is going to lessen the LP returns..naturally. Structuring it as a JV would be the path to go if you don't plan on doing a GP/LP structure.

What Every Real Estate Investor Needs to Know About Cashflow..very dry but great info to help you understand analyzing deals.

The process is pretty simple. Your custodian will set you up with a holding LLC. That LLC will be the entity that invests in the syndication. Most syndicators have an investor portal that will simply allow you to choose "investing with an IRA" and prompt you to fill out the legal docs correspondingly. You will get a K1 tax document each year with your IRA LLC listed as the entity..and your CPA should be able to handle it from there.

House hack is a great way to get started.  I started with house hacking a duplex 3 years ago.  That deal taught me the basics of real estate and allowed me to scale to where I am today. 

Not an attorney but if you are looking to structure it as a syndication (meaning investors are taking a passive LP position), then you will likely need an operating agreement, subscription agreement, and PPM.  At the bare minimum you need an operating agreement.  Might be worth talking to another attorney with experience in structuring partnership deals.

There are different ways you can structure it. If everyone plans to be active in the deal, you can set it up as a JV by simply creating and entity with an operating agreement. If you are going to set it up as a syndication structure where someone is charging fees/equity for doing all the work then you will need to work with a syndication attorney to set it up and the structure gets a little more complicated. Setting up the entity is not the hardest part, the hardest part is determining who is going to do what on the deal.

Thanks @Account Closed. A great way to start is with house hacking a duplex. Leverage an FHA loan and you are able to get into your first deal with minimal money out of pocket. Once you learn the ropes on your first deal, you will gain confidence in scaling from there.