Syndication/ Raising Capital

[Zac Vaughan]

Hey BP Members, I have a question for you all! 

Lets say I have a property that requires a large downpayment (+ $50,000) and I do not have the funds. The property cashflows +$2,000 and has a 3.55 Cap. What is the proper way to raise the capital without getting in trouble and if I raised the capital for the down payment, what kind of return is fair? Typically, for the smaller deals I have done, I would create a promissory note and offer a 15% ROI. Thank you!

[Shiela R.]

What about a simple JV agreement that states you'd create an LLC where you are 50/50 partners for taxes, cashflow, etc.? Money partner pays all expenses (insurance, property taxes, repairs, et al) and you agree to manage the property. The experience of managing will likely be invaluable. And you'll get a k-1 which should offer some tax benefits.

Keep it simple. :)