How to Structure deals with Investors

[David Dickerson]

Hi smart people!

i want to invite others to invest with me in some multi family.  What are the best ways to structure this?  I want to maintain control and be able to purchase larger deals than I can you on my own.   

example:. I would put in $150K, then raise say $350K more.  Then we could purchase a $2,000,000+ property.  I would want the investors to have only 350 of the 2,000 "votes".  Also want to know how to structure easy exits for investors if they choose to leave.    Any books about this specific issue?   How to legally structure things and keep good investor relations.  And is there a way to sell to investors a $1.00 piece  for $.90 since I'll be doing all the work.

thanks, David

[Rick Pozos]

Most people who are looking to purchase larger multifamily do so in syndications. I just purchased an RV park in my local area. Raised 450k from some friends and family. I own with my partner 30% of the deal. The limited partners own the other 70%. Thats the simple of it. Lots of details, legal junk and accounting junk.

The great part of this is that I did not put any cash into the deal. My investors were people who know me and trust me 100%, so it is more likely that they will invest with me without me putting cash into the deal. As I raise more money for bigger projects, with people that I dont know as well, the more likely that I will need to put money into those deals to gain trust.

Read up on Syndications. That is how most of the bigger deals happen.