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Updated about 2 years ago, 11/07/2022

User Stats

48
Posts
13
Votes
Adriel Cisneros
  • Investor
  • Miami
13
Votes |
48
Posts

How do you raise capital from non accredited Investors?

Adriel Cisneros
  • Investor
  • Miami
Posted

BiggerPockets community,

Here is my dilemma. 

My primary LPs are friends and family that fall shy of the accredited investor income requirements. They are mostly Spanish speaking small business owners in Pilsen and the lower West Side of Chicago. 

Part of my strategy as a GP is to leverage YouTube shorts (Spanish) and MeetUps to widen my investor base. 

A 506(c) syndication would make sense but it only allows for accredited investors. And a 506(b) syndication is a great alternative because it permits up to 35 sophisticated investors but I cannot rely on my prior advertisement efforts. 

What is the best way to integrate my current LP pool with the correct syndication structure?

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