Is 50,000 dollars a daunting amount of money for you right now? To many, this is a high bar to entry.

Well, maybe you don’t have to have a whole 50,000 dollars. There is a way to get by with 10,000 or 25,000, and still be passive.

Some sponsors will do capital raises for smaller deals.

Here’s How:

While a syndication can raise unlimited amounts from accredited investors, they can currently also raise income from up to 35 unaccredited or sophisticated investors through the 506b regulation D exemption. 

Per the SEC (the Securities and Exchange Commission), here are some of the major rules:

• The sponsor is required to have substantial proof of prior relation to the potential investor.
• General solicitation is prohibited.
• Must provide the non-accredited investors with disclosure documents, and an audit of the fund’s balance sheet.

This may make it seem difficult to get your feet in the water, but it’s really as simple as building relationships with potential sponsors. 

Real estate is a relationship business for both passive investors and general partners.

In a lot of cases, there will be initial phone calls, so the sponsor can learn your goals. Then, you can choose to proceed from there.

All the while, you can sponge lots of juicy knowledge by subscribing for future posts. 

The goal is to help you become a knowledgeable and prepared investor one little knowledge nugget at a time.