Funding my multi family with private money

[Kade Eiguren]

Hi all,

I have a 36 unit multi family project on my hands. I own the land and have done all the homework on the project itself, but currently we are stuck in the financing stage. We are pushing for a HUD loan, but will take apprx 6 months or longer to acquire. I have recently been thinking of raising private money for the project. Project building cost is just under 5M and i know there are a LOT of investors and people here that know a lot more than I do.

I would love advice on how to structure this deal. Would I set it up as a fund? Tie each individual investor into the property itself? I would love any input and would also love to connect with anybody with experience in this area!

Thanks in advance to all you rockstars

[Greg Dickerson]

Originally posted by @Kade Eiguren:

Hi all,

I have a 36 unit multi family project on my hands. I own the land and have done all the homework on the project itself, but currently we are stuck in the financing stage. We are pushing for a HUD loan, but will take apprx 6 months or longer to acquire. I have recently been thinking of raising private money for the project. Project building cost is just under 5M and i know there are a LOT of investors and people here that know a lot more than I do.

I would love advice on how to structure this deal. Would I set it up as a fund? Tie each individual investor into the property itself? I would love any input and would also love to connect with anybody with experience in this area!

Thanks in advance to all you rockstars

Development syndication is a tough road unless you have solid experience and track record. My advice would be to wait for he HUD financing. You can get up to 40 year non-recourse 75% LTC. That being said if you want to raise the cash you need to go ahead and syndicate the deal. I would recommend you structure the deal as 506c so you can do general solicitation to accredited investors if you need to raise money fast otherwise with 506b you need a prior relationship with any potential investor and you can't advertise for investors.