Starting Out
Market News & Data
General Info
Real Estate Strategies
Landlording & Rental Properties
Real Estate Professionals
Financial, Tax, & Legal
Real Estate Classifieds
Reviews & Feedback
Updated over 5 years ago,
How does one start a real estate investing or holding company?
I have interest in starting a real estate holding or investing company where its ultimate goal will be to invest in long term multifamily commercial type properties.
The properties will be acquired for their income generating abilities, and it'll target properties with high or full occupancy and healthy and steady rent-rolls over years of former management and ownership.
I want to start it as a startup and use venture capital or angel investor financing to afford the mortgage payments for the initial properties and use as leverage to acquire them.
It will also be used to finance other things such as broker fees, consulting fees, labors costs for the company, executive pays, legal fees, maintenance of the properties, property management fees, and other fees needed to operate and maintain the company unmentioned.
Investors will get returns on their investment given to them in exchange for their investments when the company is taken public through an IPO or is sold. Through going public with an IPO, investors will be able to liquidate shares of the company they'll own in exchange for investing in the company.
If the company is sold versus going through an IPO, it'll offer them a proportional share of the sale in proportion to their initial investment in the company.
If venture capitalist or angel investors aren't available as options to finance the company, it's unclear as to how the company will be able to finance itself through other means. If it is available, it's unclear as to where angel investors and venture capitalist can be found for their investments and how to get in contact with them for attempts to acquire them.
How can I get financing for the company? If through venture capitalist and angel investors, how? If not, how? If other options, how? What would I need to acquire the financing for the company and properties? Won't I need? Why? Why not?