Raising Capital, complying with securities, self-directed IRA's

[Shiv Jey]

I'm learning as much as I can to delve into multifamily properties.  However, I have many questions regarding financing:

1.  I have a high income already, and can put in about 200k.  What loan products or class of loans should I search for to fund non-owner occupied for out-of-state investing and are they non-recourse?

2. I'm starting to see that using my money in addition to others' vastly increases the size of project I can go for. How does one typically find self-directed IRA investors to invest?

3.  When getting others to invest, does it automatically become a security, and require a special attorney for all filings?  I'm reading these books by lindahl and others and the impression I'm getting is that they're securing financing without these complicated syndications.  Can someone explain this to me?  Even the podcasts I listen to, people are talking about getting financing from friends or investment clubs, but no one speaks of all this other stuff...are they just not talking about it?  Or are they setting up their contract such that it doesn't become an issue?  And if so, how?

[Todd Dexheimer]

1. Loan products will depend on the size and price. 1-4 family you can get 30 year fixed, possibly FHA. It's in your personal name and carries good rates. 5+ unit under $1M loan size will require a local or regional bank in most cases. These will be 20-25 year amortization, 5-10 year balloon, 4.25%-6%. Loans over $1M on stable properties may qualify for fannie mae/Freddie Mac. 30 year am, 10 year fixed. 3.75%+

2. People with IRA's that can become self directed have quit a decent job at some point, retired or are self employed or are just diligent savers. Network with you friends and family or network with the national/local self directed IRA custodians

3. If you have a partner or a few and they are all involved in the operations to an extent that could deem them a partner, then a syndication may not be needed. If you are running the show and they are just collecting a check or adding little to no operational value, then you should run it as a syndication. I would not mess around with the SEC. Do it right and avoid playing with bubba!