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Homepage/Forums/The Marketplace/Raising Capital & Case Studies/Fund structure

Fund structure

equity fundSECsyndication
    • 9 years, 10 months ago LukeP1
      Member

      I’m putting together a NPL private equity fund and was looking for some input on what kind of terms and rates you give your investors and how you structured your fund. I’d like to work with multiple non-accredited investors on a passive level without giving everyone a job in an LLC agreement or doing one-to-one deals. I also want to offer investment amounts as low as $10,000 (or less). I hear it’s harder to do that while still following SEC regs. Thoughts….?

      Luke

    • 9 years, 10 months ago ShawnL
      Member

      You may need to ask a securities attorney. If you’re signing up passive investors in an LLC you could still be exposing yourself to risk. SEC is like the IRS. If you set up entities to skirt around SEC rules, even though on paper its legit you could still get in trouble.

      One way of raising OPM without going through SEC is to do one off deals by selling the NPN to the clients LLC. He can authorize you as a manager or officer of the LLC if he wants you to do workouts.

      Another way of doing it is by using a promissary note and collateral assignment

       

    • 9 years, 6 months ago ScottF1
      Member

      A fund is a good way to go, Ironically it is mainly designed to protect you the Fund Manager even though the SEC is designed to protect investors.  There are different types of funds, states have rules and the SEC has rules, make sure an attorney has input in your offering documents.  Most funds are a derivative of section 505-506 in regulation D of the SEC rules.  Each type of fund has different fund member requirements, some allow non accredited investors and others do not.  To put yourself in the safest position you should consider taking investments from accredited investors only, your risk in taking money from non accredited investors is much higher if things go sideways.  You can set the minimum amount of investment, its not a regulatory issue, however managing small investors can be time consuming

    • 9 years, 4 months ago John_R
      Participant

      You might want to check out Jillian Sidoti. She had spoken at the Ohio Real Estate Convention a few years back. She really sounds like she knows the in & outs and knows the real estate investor business as well.

      <cite>www.jilliansidoti.com</cite>

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