All Forum Posts by: Ryan Franklin

 Brian, thank you for the info! I have an appt scheduled with @Kim Lisa Taylor's office tomorrow. Just trying to understand as much as possible so I can ask informed questions when I get there. 

Hi guys...I'm putting together my first syndicated apartment complex deal and I have questions regarding raising private funds in conjunction with bank commercial mortgage lending.

For these questions assume I have already analyzed and put together a deal package and sent it out to investors.

1.) Say I have enough committed investors to fund the deal. At what point do I take their money? I imagine I wouldn't take the money until I have the deal under contract, but what if I need to show proof of funds before I can get the deal under contract?

2.) If I don't take the money until after I get a deal under contract, I assume there is a high likelihood that one or more investors might pull out of the deal leaving me short of the required capital. Do I "overbook" commitments to guard against this type of scenario - and give precedence to the people that committed but get left out of the deal in my next deal?

First of all congrats @Dan Beaulieu! Secondly, EVERY aspiring flipper needs to read your post. 90% of the people on here are so afraid to make a mistake, they never get started. Guess what newbies (I am one, so I'm allowed to bust on y'all ;). You are GOING to make mistakes. It's pretty much guaranteed...but it's an integral part of the learning process. Daniel found a house, did the analysis he likely learned much of here on BiggerPockets, and took the plunge! Did he make mistakes? Of course! Was he worried, stressed, etc? OF COURSE! Would he do it again (and even better next time)? Without a doubt.

Congrats again!

Thanks @Andrew Cushman! Great advice...I just set up an appt with Kim's office.

Great! Thanks @Kim Lisa Taylor...will be in touch!

Thanks @Neil Whitney. Sounds like you and @Dave B. are on the same page. Dave was kind enough to explain the purpose of setting it up this way which has been an eye-opener. Headed out to find a lawyer to set this stuff up right! 

Excellent....thank you, @Avi Garg!

Hi @Avi Garg. Thanks for you answer. Can you please explain what are the advantages of incorporating the same state as the property? Some states (Nevade, Delaware, Wyoming) have significant tax advantages...so I was considering incorporating there.

I am putting together my syndicated apartment complex purchase/deal. Obviously I need to do this through an LLC. Which state should I incorporate in?

Hi BPers. I need some help! I am putting together my first deal for an apartment complex. I have lined up interested investors, but many of them are not "accredited." Am I only able to accept investment from accredited investors?

I did some research and found the following table describing 506(b) vs 506(c) offerings:

The way I interpret this is as long as there is a pre-existing relationship with the investor(s), there should be no problem, correct?! These are long standing friends of mine, so I'm hoping this will put me in the clear. But what happens if my friends then get other interested parties? They wouldn't pass the "pre-existing relationship" test, but I also didn't "advertise" to them. Ugh...I need a lawyer. Luckily they are plenty of you on here! Any RE lawyer types in Fayetteville, NC?!

Now...how the heck do I "register" as a 506(b) offering?! It's incredible how many rabbit holes you have to explore your first time around!