Course 1.0 – Week 5 Lesson 4: Raising Equity from Investors

When doing a multifamily real estate deal, you may lack the necessary funds to purchase the deal yourself. To supply the shortfall, you may want to raise money from other people, but there are some serious issues to beware of here. For example, did you know that if you take money from passive investors, you will be issuing securities and need to fall within an exception to the securities laws or the SEC could come after you? We will briefly cover some of these critical issues in this lesson. We will also walk through the money raising process, both before and after you have a deal under contract and talk about the kinds of deal structures that sophisticated investors expect.