How to Structure Your Real Estate Fund

Jared Lutz · October 5, 2023

Module 1: Introduction to Real Estate Syndication

  • Understanding the basics of real estate syndication.
  • The importance of pre-existing substantive relationships in real estate syndication.

Module 2: The Regulatory Landscape

  • An overview of SEC Regulations: 506(b) and 506(c).
  • The role of advertising and general solicitation in fund structuring.
  • Compliance considerations: Ensuring that referrals and promotions are within regulatory boundaries.

Module 3: Fund Focus: Broad vs. Narrow

  • Benefits of a broad fund focus.
    • Flexibility in investment choices.
    • Adapting to changing market conditions.
  • Drawbacks of a broad fund focus.
    • Possible investor apprehension due to lack of specificity.
    • Challenges in conveying expertise in multiple areas.
  • Benefits of a narrow fund focus.
    • Clear investment strategy and direction.
    • Easier to market to specific investor groups.
  • Drawbacks of a narrow fund focus.
    • Limited flexibility in investment choices.
    • Potential missed opportunities outside the narrow focus.

Module 4: Key Players in Real Estate Funds

  • Roles and responsibilities of:
    • Sponsors
    • Investors
    • Intermediaries
  • The importance of substantive relationships between fund managers and investors.

Module 5: Structuring the Fund

  • Fund of funds: Understanding the concept and its benefits.
  • Choosing between different legal structures: LLCs vs. Limited Partnerships.
  • Geographic considerations: Where to register the fund.
  • Asset-based considerations: Focusing on specific real estate types like multi-family units, Airbnb, mobile home parks, etc.

Module 6: Compliance and Documentation

  • The importance of documentation in ensuring compliance.
  • The role of emails and written records in establishing relationships and intent.
  • Understanding Form D and its significance.
  • Managing compliance across different states.

Module 7: Addressing Common Queries

  • Can a 506(b) fund invest in a 506(c) fund?
  • Understanding accredited vs. non-accredited investors in fund structuring.
  • Addressing common misconceptions and challenges.

Module 8: Real-World Case Studies

  • Exploring successful real estate fund structures.
  • Lessons from industry experts and successful fund managers.
  • Analyzing challenges faced and solutions implemented.

Module 9: Conclusion and Next Steps

  • Summarizing key takeaways.
  • Steps to initiate your real estate fund.
  • Resources and further reading.

This course will provide participants with a comprehensive understanding of how to effectively structure their real estate fund, keeping in mind both regulatory requirements and strategic considerations.

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Course Includes

  • 14 Lessons