Group fund

[Michael Lemieux]

The thought occurred to me the other day to potentially start a fund, at my regular job, to invest in a property. None of us are going to retire on our 401s. The plan would be for each of us, maybe 20 members, to contribute a whopping $25/wk for a year or so, and use that money to invest in a MF or possibly self storage.

Obviously 25k is not going to buy us much of an apartment complex, but hopefully with some creativity, and the right deal, it could get us started.

I'm also thinking that a year from now; I'll have more knowledge, thanks to B.P., more experience, and more deal flow.

What do you think?

Thanks

[Eric Black]

Hi Michael,

This is not a bad idea however you must be EXTREMELY careful when creating this type of "fund". Be sure to learn what you can about syndication and all of the SEC rules. If you personally know everyone who would be investing it may be different. I'm no expert in this arena but I know the rules can be very tricky so be sure do get educated on this topic before you ask a single person for money.

True, $25k probably won't get much of a deal although I'm not familiar with your particular market. Remember though, people may be able to contribute in other ways, such as through self-directed IRA's, etc. that might allow for faster capital build-up.