Real Estate Syndication VS Real Estate Fund – Which Is Better? – Natu Myers of – Capital Raises


So you have two people, one who syndicates real estate and creates a real estate syndication and they manage to raise money and they talk about how they managed to raise millions and, you know, get a good return for their investors. You have another that happens to create a real estate private equity fund and he gets to raise more money.


He has more flexibility and he has a bigger track record and reputation. What really is the key little known difference that separates these two? Well, it’s. When the syndicator knows when the syndicator knows when to syndicate and private equity fund manager knows when they lost his private equity fund.

The main difference that everybody gets wrong between the real estate syndication and the private equity fund. One little known tip is really the status and the brand and the reputation around doing a private equity fund syndications, you know, sometimes I guess the main difference is really when you’re syndicated.

Real estate. You’re focusing on one assets, right? Like one piece of property or one piece of land or whatever, which is good in a sense. But sometimes when people raise money for a syndication, they sometimes they look through different ways of doing it. There are some ways that are quote unquote more beginner and more quote unquote low status.

And then there are some ways that are really, you know, experts and really, you know, like professional. And when you’re looking to raise millions of dollars from investors, you have to do things. Professional way, if you want to get the track record and respect that you want. So the way that people do the real estate syndications is let’s say that you’re working on acquiring one piece of land, but let’s say that that building behind me, for example, you know, what people would do, they would create, I guess, the best way that raises a common, for example, in our members and people that work with investment banks and so on.

The best way that we know and how people create these real estate syndications is to create it as a limited. Partnership and sell the units of the limited partnership as a private placements. If you, this is, if you’re working on raising capital for the down payment, let’s say you wanna buy a $5 million deal and you don’t have, you know, the 25%, you know, the 1.25, you know, to put into the deal, you know what some people would do?

They would create a limited partnership, right? A limited partnership, just to sell those sell units into that down payments. That probably they’ll put like 10% of that 1.25%. To show that they have skin in the game and then they’ll raise money via selling, you know, the other 90 percent of the units so that they can buy that down payment.

And so let’s say the name of the apartments is one, two, three fake street. They would raise capital to buy one, two, three fake street. And then that’s pretty much how it goes. But there are other ways of doing syndications where people just create an incorporation. And then they look for business partners to fill in you know, to be full time business owners in that corporation.

And people do this all the time. And the SEC knows it and everything. The only thing is that, yeah, well, it’s quick and dirty, you know, it can kind of limit you to a low status kind of, you know, way of doing it. So the second way is the private equity fund. And the thing that prevents people from hitting, going through the private equity fund route is track record.

Because if somebody just invests in real estate, Why would an investor trust them to manage their money in invested in multiple deals where the investor could just choose to do one deal at a time? So that’s the number one objection that people get and it has to do with track record. That’s why there are two groups of people who we work with at raises.

com. Those who have worked on multiple real estate syndications and are looking to set up the private equity fund because they have the highest levels of success to actually get funding for their private equity fund. And then those who haven’t done any prior syndications or prior equity deals. I’m looking to do their first.

So if you were to work with people to do that, then you have a, you have a bearing on which ones to do. And ultimately it depends on how experienced you and your management team is, whether you’re looking to acquire one deal or multiple, and whether you’re willing to go through the private placement routes for your private equity deal, JVS and all this can work and create an incorporation and doing all this stuff can work, but longterm, I mean, if you’re looking to raise like tens of millions.

dollars or even hundreds of millions of dollars private placements is usually the way to go. Uh, and working with, or working with institutional investors. And so with this, I hope this gives you some clarity on which path you would take, whether you be the, you know, the syndicator or whether you be the private equity fund manager for real estates.

And if you need help on actually getting this done and actually building this, just make sure that you head to

Go to to book a call as well for your equity fund.

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