All Forum Posts by: Josh Sullivan

Thank you all for your responses. The distinction between a JV and syndicating deals is what I'm struggling with right now. I plan to start small, like a JV, with a small group of people to go in on a few value-add flips, and then I have a list of 50+ people willing to invest for deals going forward.

At what point does it switch to syndicating deals or when does that switch make financial sense?

Alex - at what point does it switch from a JV to syndicating deals? I want to start with a small group of people but after a few value-add flips, I want to start continually source deals for a list of 50+ that can invest. I've been told in the past that this is considered syndication with "sophisticated" investors as opposed to a fund with accredited investors.

Thanks Jose. Let's assume this is my first investment property. 4 unit rental for $600k. annual rental income is $84,000. 780+ FICO score with over $100,000 in reserves. 

I am looking to start syndicating deals to my personal network of friends as LPs and have myself as the GP. I'll be sourcing, vetting, compiling all market research/comps and providing financial projections.

My question is, what loan structure is best for an LLC with multiple partners? What are my loan product options, and what are the typical down payment/term/cash to close for a deal like this? For argument's sake let's say a $500k 4 unit rental. Myself as the GP and 3 other LPs kicking in cash.

I am looking to start syndicating deals to my personal network of friends as LPs and have myself as the GP. I'll be sourcing, vetting, compiling all market research/comps and providing financial projections. 

My question is, what loan structure is best for an LLC with multiple partners? What are my loan product options, and what are the typical down payment/term/cash to close for a deal like this? For argument's sake let's say a $500k 4 unit rental. Myself as the GP and 3 other LPs kicking in cash.

@Charles Carillo Thank you so much for the feedback. I'll be sure to reach out for SEC attorneys once I'm at that stage. Best, Josh

Hi BP Community, 

I have been working in commercial development for almost a decade, primarily in acquisitions/underwriting/market research. I started doing third-party consulting and am now in-house with a developer. I'd like to take advantage of the knowledge I've gained and begin identifying investment opportunities for myself. 

I have a number of fraternity brothers, friends, family etc that have all asked about investing with me at various points. It would not be enough equity to justify a Private Equity Real Estate Fund, but am unsure what other fund type it would be classified as? Joint-venture? Limited-Partnership? LLC? What entities would I need to set up and what exposure would I have from regulatory and taxation stand-point? I am based in New England.

30,000 foot view of my model is  to identify underutilized/value add opportunities and raise capital on a deal-by-deal basis (multi-family, industrial and self-storage). I would prefer to make up the down payment of friends and family and debt for the rest. Open to any and all suggestions. 

Thank you all!