How to Buy Apartments With Other People’s Money (Step-By-Step) – Capital Raises – Investment banking

This video, I’m going to show you how real estate funds are structured at a very simple and basic level. And this is for beginners who want to get into real estate funds and real estate syndications. So basically the first thing is to know the difference and know the type of real estate funds that there are.

 

 

And I’m only going to focus on two of the most commonly typed real types of real estate funds. So the first type of real estate fund is a real estate syndication and a real estate syndication is really. A type, some people categorize it and many people categorize it as a type of real estate fund that focuses on helping people buy one specific piece of real estate.

So let’s say that you want to buy an apartment using very little of your own money and you can’t afford the down payment. Instead of using your own money for the down payment to buy real estate, some people create what is called a real estate syndication. And that basically helps people come together to put their money together.

To put on a down payment so that they can buy real estate. The problem is when you approach investors to try to put money into that down payment with you, it gets pretty tricky because many people don’t know that there are a lot of laws around this, that you can’t just go out on the streets and try to ask random people to put in 50, 000 into real estate for you.

There are actually laws against this because what if the investor doesn’t get the money that they want and then they want to sue you. So that’s why a lot of people in you must create something called a private placements. A private placement allows people to put money into the down payments of the real estate for you.

So to do that, to put money into the down payment so you can buy real estate, there are two ways of doing it. The syndication is really when people do it for one real estate deal at a time and then the real estate fund, some people call it, And some people even go as far as having something called a search fund or a blind pool fund.

But basically the real estate fund is what most people say is when you raise money to buy whatever types of real estate or deals that you want. You have another thing called the real estate syndication where it’s one specific piece of property. So let’s say you want to buy like that piece of property behind me.

I’ll create a real estate syndication which is, involves talking to the security, there’s something called the securities regulator. So talking to a bunch of people. You know, who regulates private placements, selling investments to people who are like are just on the streets who aren’t selling investments to people.

Basically, you have to make sure that you file everything properly and then you accept investments so that people can put money into that down payment and with you. And so that’s pretty much it in a nutshell. And just like selling shares in the company, because when you buy a company on the stock market, you buy shares in it.

Let’s say I want to buy Apple stock. I get a small percentage ownership of Apple. It’s just like the same thing, but then for the down payment, it’s like other people gets a percentage of that down payment and that’s what they get in exchange for working with you. And that’s pretty much it. And then the last thing is instead of it being structured as a corporation, because a corporation, because it will be Apple Inc or Google LLC and so on, there’ll be incorporations and there’ll be shares in the incorporation.

The only, another main difference is that there’ll be structured as usually. Partnerships and there are two types of partnerships. Usually there’s a general partnership and then there’s a limited partnership. The general partnership is when people come together and they take responsibilities in the day to day of the business.

So it’s usually the person who’s raising money to buy the real estate, who runs the general partnership. And then there’s a limited partnership, which is another type of partnership. That limits the liability that they have in the deal. So meaning that they don’t take responsibility over the day to day.

And so usually these funds are structured as a general partnership and a limited partnership. And the people that run the deal, the operators, the people that are selling the deal and then doing most of the work, they’re called the general partners. And then they usually. And then the limited partners are the ones who are investing.

They take shares in the limited partnership. And then the general partner uses the limited partner’s money to go out and fix up, fix everything up and then to buy the assets and to get the loans and then to Fix the cabinets or improve the business and improve the operations and then they make more money and then they give that money back to the limited partners so that people that own parts, parts sharing that limited partnership can go on and actually get their money that they were promised.

And so if this makes a little bit of sense and you want to work with our team to actually do this for you, make sure you head to raises. com. If this is something that you want to learn and make sure you continue watching the next video It should be somewhere up on the screen wherever the algorithm puts it up these days and make sure you follow it So that you can learn more

How to Buy Apartments With Other People’s Money (Step-By-Step) – Capital Raises – Investment bank

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