All Forum Posts by: Steven Gilbert

 Hi Brock, 

Great advice. This is definitely a document I will cover with my attorney, particularly if there are laws around this equity structure that need to be changed in order to be compliant. I appreciate your feedback.

The general partnership has 500k left to raise (Approx 50% remaining) in a 506 (c) fund. There are three GP's, the capital partner, the operator, and the fundraiser... 

30% equity stake in the GP is reserved for raising a total of $1M, it is pro-rata. Since only 50% is left to raise, the stake up for grabs is 15%. Any member of the GP is allowed to raise the funds needed and will be rewarded with additional equity in the GP at the time of acquisition.

Trying to write a General Partnership Agreement to capture this offering. 

Any tips on what verbiage to use in this part of the agreement? 

@Scott Mac It would be great to be in a Yacht Club. Even though this is new for me, I am grateful for the opportunity to contribute to this partnership. I appreciate the advice of who I might be able to reach out to, I have people like that in my network I haven't spoken with yet. 

We are running a 506(c) fund, so I hope posting a question like this in a forum wouldn't violate any SEC guidelines!

@Chris Levarek Words of wisdom. I fully agree - I wish I had more time to raise these funds and will be more diligent in building a network much sooner in case another great opportunity like this arises. They brought me into this deal 2 weeks ago. We have backup options for funding so the deal doesn't fall through, but it would be more profitable for everyone involved if we can source Debt from the bank as planned - we've secured very good terms contingent on our LTV.

 I haven't considered PAID advertising - I'll look into this now. Do you have any advice on where to start?

My Question: What are the most effective ways you've been able to raise capital in Denver?

The Problem: I am struggling to find enough accredited investors to pitch this deal to.

The Details: I've been privileged to receive an invitation to join an experienced general partnership working on a student housing complex in Denver - The complex is under contract for $2.8M. The deal has the debt set up but the equity portion is only 50% funded (25% funded by the general partnership). It's a value-add deal with high projected returns (A very conservative projection of 19% IRR for a 3-5 year disposition). We have till mid-December to close. The team has tasked me with raising the remaining capital. We have all legal documentation in order including the operating agreement and PPM which was drafted by a licensed attorney.

What I've Tried:  I have gone to local meet-ups, reached out to friends, reached out to family, and tried networking on LinkedIn. I truly believe this is a great opportunity for accredited investors - but I can't find enough to pitch this deal to.

Disclosure: I am not posting on BP to find investors - I am here for advice on how to find investors in the Denver Area.

Hi Everyone, thanks for the encouragement! To clarify I got a 3% loan because it was a first time home buyer program and I lived in one of the units as my primary residents so it was approved to be that low. I probably won't be able to replicate 3% again, but the property has already produced enough income for me to start looking into another investment opportunity! 

I did a 3% owner occupied conventional loan. After I finish up some upgrades to the house, I have plans to refinance in 2020 to drop PMI. I am in Indiana.

I would definately recommend getting a home with an additional unit. I couldnt find a 4-plex for sale near me, as that would have been ideal for cashflow. It's at least been nice having the basement apartment and with a separate entrance so we both have plenty of space. I wish you luck in 2020!

Investment Info:

Small multi-family (2-4 units) other investment.

Purchase price: $130,000
Cash invested: $5,000

After receiving my first paycheck as a college grad I watched it disappear into my landlord's pocket. My wife and I carefully decided to purchase a home with a unit to rent out and pay our mortgage. It works perfectly and we appreciate our tenant and try to provide as much value to them as they are for us. It has allowed me to keep more of my paycheck and put my wife through graduate school. We stumbled into Real Estate and this has become a new passion. I now dream of financial freedom!

Hi all, Thank you for your replies. It has been helpful to me to read your carefully worded responses. I think a lot of you misunderstood my intentions and I apologize for posting a vague question while I was in a hurry for answers. I would never use other people's money without hiring a lawyer. I just wanted to read the documents without having to hire a lawyer, I thought some people on BiggerPockets might know some examples or templates. 

I am educating myself by reading through the legal documents, I want to understand them completely before I even dream of doing anything remotely similar to syndication. And I am not trying to hide I am new to Real Estate, but I am planning my 20-year strategy now. I own 1 investment property so far and plan to own many more before I get into syndication. A special thanks to @Nate Marshall for providing the list of documents, it has been educating reading through these. 

I want to learn how to do syndication. But before I start reaching out I want to be sure I can accept money for investing while covering myself legally. Does anyone have suggestions on where I can find a list and templates of all the legal documents I would need to start doing syndication?