Wednesday, March 14, 2007

Commercial Real Estate: Raising Equity

The difficulties opposite most investors are finding the other people with the money and proactively structuring the business. Everyone needs to be clear on their role in the transaction, how profits (or losses) are disseminated, how results are reported, and how the development ends productively. The development is not as difficult as it may seem at first and it even has a name: “Syndication.” Potentially, even commercial real estate syndicators with little or no recognition history have access to hundreds of thousands of dollars, all as close as the people they already know. One word of recommendation here, though: Start making a solemn effort to clean up your credit if you are challenged in this mode. You may have to guarantee some loans and you don’t want your credit history to be a uncertain block.