Posted by JHyre in Ohio on May 16, 2002 at 06:35:00:
Securities law issues require specializd help…state laws tend to be stricter than federal and obviously vary accross the nation. With that said, partnerships, particularly between well-to-do (“sophisticated” or “qualified”) investors that are not actively marketed tend not to draw nearly as much attention as securities sold to the public in general. Many investors have done what you propose with friends or relatives…that’s not to say that it’s technically permitted, but tends to draw no attention.
John Hyre
Partnerships w/ Investors - Posted by Brian M. Powers(MI)
Posted by Brian M. Powers(MI) on May 15, 2002 at 09:25:31:
I have met with a couple of people who would be interested in putting up some funds, as investors, for me to buy investment properties with. So far I have 3 people interested, but neither of them, at least initially, want to put up enough money to fund an entire deal all on their own.
I know there are some securities concerns regarding taking money from various sources and pooling them together to purchase a property.
What about setting up a Partnership, with myself as General Partner, and the investors as Limited Partners with there stake in the partnership based on the amount they invest into the deal.
Has anyone tried this?
What are the legal implications as it relates to the securities issue?
Thanks!
BMP