A few questions on syndicates for raising funds?

[Patrick Philip]

If I'm trying to purchase a specific commercial property, I've seen that one method of raising funds could be a syndicate. My questions are...

1. Since I need a specific property, isn't it likely that someone else would buy it by the time I can raise the funds? Especially since I've never done this before?

2. What do I give the investors in return? Do I just give them interest like it's a loan? Or do they share in the profits as well?

3. Do they actually get any ownership of the company that owns the property? I would hope not.

4. How is their investment secured? Especially if there is any real bank loan involved. Obviously I can't secure both the bank loan and the syndicate investors with the same property. Do they have any guarantee at all?

[Brian Adams]

@Patrick Philip If you don't have all the funds to purchase the property, than Yes - you will need to share with investors.

Wouldn't you agree, 25% to 50% ownership of a deal is better than 100% of no deal?

You are in the early stages and you have lots to learn. Wanted to pass along this link to help you:

Apartment Syndications And How To Tap Into Huge Passive Income Profits

Good luck