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Updated over 6 years ago,
Raising Money - Real Estate Syndication
I have not posted on this site before but am curious to find out if it really is as powerful as every Podcast seems to suggest.
By way of background, I am a CPA in Colorado and earned by Masters in Tax from the University of Denver. I worked in Big 4 public accounting for two years as a tax associate focused on REIT taxation and structuring and I currently work for a REIT in the Denver area that invests in farmland.
I would like to start developing some independent real estate investment opportunities and will need to raise equity capital. I understand the modeling that goes into real estate deals as I have done a fair bit of such modeling in my career thus far. I also understand how capital stacks and equity waterfalls work in typical private equity deals.
But here is my question. If I am able to source deals through a sound brokerage network and am looking to get to deals of relative scale faster (raising between $1.5m to $2m in equity capital at an 8% hurdle), where is the best place to find people interested in investing in a new GP with limited to no "street credit"? All the equity sources that I know of are institutional sources that invest in REIT level deals and are WAY to large to ever take an interest in my middle market $3 to 6 million deal. RealtyShares was one option that I found interesting but they basically tell you that they are a crowd funding site for middle market institutional players. They also charge 10% on common equity which seems aggressive in the current real estate market.
Interested to hear what the BiggerPockets community has to say about this topic.