All Forum Posts by: Tony L.

Hello all,

Not sure if others have experience with this but what are the legal requirements if you are pooling money from friends and family and not necessarily syndicating your own deal but investing (as an lLC or LP entity) into an experienced sponsors deal? We would be collecting a minuscule operating/admin fee for finding the right sponsor. I just want to see if its worth it to proceed or if I should have my investors wait until we find our own deal.

Would this be similar to if I was to syndicate a deal myself where I would raise under 506(b)? I assume the documents needed would be Operating agreement but don't know if subdoc or PPM would be required.

Hey Itteahad,

You don't necessarily have to raise the full $1.51 million. With leverage you only need to raise 25% + few % for closing and fees in order to take down the property.

I see you're located in NY, if you're ever in manhattan I am in an REI meetup in midtown that discusses Multifamily every week. Might be a good place to run some of your ideas/numbers by others.

If you want to understand concepts then understanding key metrics is important.

1) What Every Real Estate Investor Needs to Know About Cash Flow by Frank Galinelli is a good read.

If you want to understand the mechanics of modelling so that you can properly  create your own underwriting model try the 

2) Fundamentals of Real estate modelling by Roger Staiger.

Second book is very dry but you learn how to build your own model and understand each input/variable and how it effects your numbers

Assuming you're new, do some research and find your target market and the metrics behind why you're targeting this area. Then reach out to brokers and build relationships via events. From those relationship build a core team that allows you to execute acquisition & business operations.

I know a syndication lawyer will prepare most of these documents regarding our investors, but I wanted to get an understanding beforehand what will be needed from my investor base when they start to invest in my MF deals. 

I'm basically trying to manage my investors expectations in terms of all the forms they need to sign and background checks (source of income information) needed to verify whether they are a qualified investor (accredited).

Definitely would be an addition. Found other sides that do the same and charge a fee, would be more convenient if it was all available at BP

Interior Looks amazing. Definitely my taste in style.