Private real estate equity fund

[Vi Tran]

Hi everyone

I have been looking around and I can't find anything related to this topic. Maybe is because I'm using my iPhone to search lol.

A group of young professional and I want to startup a equity fund to start buying, flipping, & renting real estate. Do I need to start an LLC for that? I'm also want to know what are the difference method I can you to pay out the investors?

Is there an books you guy can recommend

Thanks

Vi

[Don Konipol]

Legallities aside, to successfully raise capital in this environment you will need a verifiable track record of success in the same or similar ventures. From your post, which generically lists buying, flipping (selling) and renting real estate (this cover about all the real estate industry), I get the impression that your group has neither much experience nor much capital.

Since 2008 it has been a struggle for those of us with experience, expertise, track record of success in similar ventures and the willingness to put a significant amount of our own capital on the line to raise equity money. I personally have only been able to raise one third the capital I raised prior to 2008 (on a yearly basis). Three other individuals have since asked me to consult with them with the object of raising capital. Although they all had success in the specific space they were thinking of raising equity in, I advised them to forget raising equity in this enviroment. All three spent between $10K and $50K in legal, startup, advertising, web design, SEO, etc; none were able to obtain any capital.

Perhaps the market will change and the window of opportunity will once again open. Even so the "promoter' needs to have good legal consul to proceed. Any representations made to passive investors either verbal or written can and will be used in a lawsuit against you if the venture fails to produce the expected results.