Archive for Limited Partnership
Private Money Deal Structuring for Real Estate Investments
Posted by: | CommentsThere are many choices when it comes to structuring your private money deal. In fact, there are almost “too many” choices and it can be confusing, especially if you are just beginning to raise private investor capital for your real estate investments. Therefore, what I’d like to do here is break down for you the different ways in which you can bring private money into your investment property deals.
First of all, the structure of the deal depends on a few factors, such as:
- Type of investment property (house, apartment, mini-storage, mixed use) – the reason this is important is because each deal has different financial performance characteristics
- Time frame of investment – how long will the deal take from funding to completion? is it a quick flip or a long term hold?
- Private investor objectives – what does the private investor want? are they looking for steady returns or will they defer for bigger upside?
- Tax impact of deal – what is the tax impact to you and your private investors? do accelerated depreciation, 1031’s or other factors come into the picture with the property?
Now that we know some of the drivers of real estate investment deal structure, let’s look at some of the ways you can structure the private money investment: Read More→
Advertising for Private Money is for the Birds…or Not
Posted by: | CommentsYou’ve got a great business set up. Deals are coming your way. A few choice big target properties are in your sights. They are all multi-million dollar deals. Now there is nothing standing between you and a nice steady stream of huge monthly cash flow…except the equity piece of the financing puzzle. You’ve determined you need to raise a few million bucks. Enter private money.
You’ve established a strong and compelling need for private investors. You’re considering setting up a limited liability company (LLC) or a limited partnership (LP) to bring your private investors in.
One question now becomes…
How to attract the private money investors to you?
You need to drum up some serious cash and you need to go beyond your existing base of family, friends and associates (where some of those sweet securities registration exemptions exist). What to do?
In this situation, real estate investors hungry for private money will consider advertising their opportunity to perhaps the broad general public (not usually a good idea) or a targeted group (a better idea). They might take out a place ad in a local newspaper or start running internet ads to drive traffic to their website. Sounds good on the surface, except… Read More→
