Raising a Funding Pool Like a VC or Mutual Fund Would

[Troy Feldman]

Hey everyone!

I have been looking into real estate for awhile but I am a student full time as well so it is going slower than I would like. I am interested in starting to invest by raising a pool of money from outside investors and taking a 2 and 20 like a venture capital fund would, that is 2% management fees for (marketing, driving to see deals, etc...) then 20% carry on what ever interest is made from the investments. My idea with this is that I could bypass wholesaling/flipping and start on bigger projects.

I know a lot of hedge funds and private equity firms do invest in real estate, but has anyone ever heard of someone going about just real estate this way? does anyone know legal stipulations etc.. ? any input on starting this way is appreciated! 

[Wade Sikkink]

Yes this already exists, it's called a REIT.

No investor is going to put money into a "fund" being raised by someone with no experience and no money of their own.  What you are describing is what's commonly known as a pipe dream.  Come up with a different idea and think smaller to get yourself started.