How to Quickly Find Limited Partners

Commercial real estate ventures are often veryworth individuals may be working with clients that are
expensive and require multiple sources of funding.in need of a tax write-off - something that real estate
Typically, about 70% of the project can be financedinvestment can offer. Other financial professions may
with long-term loans, but the remaining 20%also be able to offer referrals.
(accounting for 10% of your own equity) must beAnother source of equity is the seller. Those that are
financed with outside equity. The investors providingselling existing buildings may be interested in becoming
this equity can be difficult and expensive to find atminority owners while those selling land may be able to
times.offer similar terms. Another thing to consider for land
Commercial real estate ventures offer three things toowners is a land lease over 100 or more years. This
equity investors. First, investors are entitled to receiveoption saves you immediate money up-front and can
a portion of the net operating income from the projectlessen the amount of money that you need to borrow
through a dividend. Secondly, investors are entitled toand raise.
their share of the profit when the commercial realThe last resort is a broker, who can cold call their
estate is sold. And finally, investors are entitled to aclients until they create a suitable list. Unfortunately,
portion of the tax write-offs associated with the realthey charge a hefty fee, so this should be used as a
estate project - namely, the interest payments.last resort. In the end, it can be extremely hard to find
Now, all of these may seem like great reasons, but itsuitable investors, but there are several sources to
can still be hard to find investors willing to jump oncheck before laying out the cash for an expensive
board. One of the best ways to find investors is to talkbroker!
to your accountant. Those that deal with high net