Structuring investor packages to fund multifamil apartment buy

[August Armbruster]

My siblings started to invest in multifamily apartments in 2016. We currently have 3 properties (93) doors in our portfolio. We own and operate all properties. We have financed every deal with conventional financing (20-25% dp with a bank loan). We used our own capital as the dp for the three buys. We are purchasing a new property and we want to start using outside money for capital. I would like to approach my inner circle of friends and family with a lucrative deal for both parties but I'm looking for feedback on how some of you structure deals like this? Thanks!

[Amy Wan]

It sounds to be like you're doing a syndication, since its unlikely your friends and family will all be active partners and contribute a unique skillset to the success of the project. In which case, you're offering a security and need to comply with securities laws. On the structuring side, I once wrote a whitepaper about how folks tend to structure distributions and fees--I dont think its on my website anymore but if you email/message me, I can try to dig it up for you.