Fund of Funds for Syndication

[Tom Dittrich]

Hello all,

-I started an investing group for physicians. We have 1350 members in just 3 months. The group would like to pool capital and invest in real estate.

-Initially I planned to syndicate myself. I am starting to wonder if doing a "fund of funds" approach and taking the capital and diversifying into 3-5 syndications would be a simpler approach for the first capital raise. It would be a 506(c) so that using our Facebook group and website would be compliant. We have the option of a blind vs semi-blind fund, open or closed, etc. 

-As fund manager I would vet the sponsors and deals and invest the capital for the group, taking a 2% AUM fee and 20% of profits above a certain benchmark IRR. I am thinking our first raise would be somewhere around 1-3million. I do have a website in development and am interviewing investor portal software companies now. I think I could provide a fairly clean investor experience for the docs, who really want to be in real estate but don't want to spend the time with education or hunting for properties.

Has anyone done this before who would be willing to offer some advice?

Good idea, bad idea?

Any tips on the best structure for what we want to accomplish?

Thanks!

Tom Dittrich

[Account Closed]

2% plus 20% of profits is hedge fund like fees. What exactly is your value for that? Once the investment is made there is nothing for you to "manage". You are adding a layer of costs that seem to me quite unnecessary. However, docs are not known for great money skills so maybe they see some value.