Considering a Syndication for My Next Project—Here’s What I’m Thinking

[Robert Ellis]

I’m looking at syndicating a new construction deal and figuring out the best way to structure it. Right now, I’m debating between a preferred return + equity split or keeping it simple with a straight equity structure.

For those who’ve done this before—what kind of deal terms have worked best for attracting investors? I want to make sure it’s a win-win while still making the project scalable. Open to thoughts!

[Robert Ellis]

Quote from @James Phillips:

I've done this. We used a preferred return of 8% plus the equity split. This structure helps to incentivize investors for the capital raising process. Still made strong returns as the GP. Could you share more about what you're up to? Are you raising money for a singular project, or do you have some set of investment parameters for projects for which you're raising money? BTW, I'm planning to move to Columbus and looking for people to connect/work with. Have some liquid cash to invest. 

 land fund. entitlements of tracts of land 50-100 acres for subdivisions and build to rent. I'm talking to the largest build to rent institutions right now to see who's expanding. we are data mapping. there's a 10% set aside for infill building but the majority is large entitlement gains. I'll shoot you a PM