I had an idea about "Syndication", what do you thinK?

[Josh Gold]

Hello Everyone,

I'm toying with an idea that I had today and was wondering if the forum would help me shoot holes in it.  

I'm thinking about a family syndication that would allow the parents (my parents and their siblings) help secure homes for their children (me and my siblings/cousins) while giving the parents an investment return.

My thought is, someone like me or my cousins do not have the capital built up to get a loan from a bank that does not include PMI so offering the "syndicate LLC" a higher return on investment for a short period of time while allowing the child better leverage to grab a house with the cash that the syndicate provides. The child would then take out a traditional mortgage from a bank to take hold of the property themselves and paying the syndicate back + interest.

This would help the parents secure better lives for their children and make money in the process.  This would also give the parents the confidence that a syndication works and eventually could move into a full investment mode and make money as a family.

That is in essence my idea, what do you think?

Thanks for your thoughts in advance!

[Jay Hinrichs]

I am thinking a simple family trust or llc will do it without SEC regulations and all the over sight a 506 has..