Raising Private Capitol

[Garry Scott]

When raising capitol for your bigger projects what has been your best avenues for private money? I'm currently working on a multifamily complex and looking to raise $15,000,000. 

I have previously only done production building, custom home builds, and flips but have always financed projects with my own capitol and am just in the position to take my company to the next level. Thank you for any advice given!

[Evan Polaski]

@Garry Scott, there are many routes you can go with this, with the most common being a sale of private securities through exemptions 506(b) or 506(c). But it is more complex than this. You can do a Reg A+ offering. You can do a JV with active investors (the definition of active will need to be clarified by your attorney).

If you are going private offerings, you may also need to look into "3c" exemptions, in order to not break any investment company act of 1940.  This also has limitations on number of investors and qualifications of those investors.  

The moral of the story is: you need to talk to an attorney.  As Chris noted, there are various rules you need to comply with, documentation and investor qualifications for each, various marketing rules for each.  It is totally doable (just search syndication on these forums), but there are also a lot of tripping hazards you need to be careful of, hence the attorneys and fairly costly legal bills to help setup.