Setting Up A Syndication

My father-in-law has seen some projects that I have been doing lately and has presented the idea of investing with me to his friends who live overseas. We are planning on setting up an LLC and a money market account to hold the funds while we look for properties. Some of the deals will most likely be short-term gains, while the majority will be long-term (rental or holding the note on a resale). My father-in-law and I are the only members of the LLC that will be living in the US. Since the capital investors will not need the tax benefits, would it be possible to write into the partnership agreement that we receive any tax benefits?

working w/ offshore investors is a specialty itself.

Find an atty & CPA that is very familar with it.

I am looking at forming an offshore "fund" or business enity to take in the offshore fund, that I don't have to worry about the IRS.

The "fund" would provide debt financing to the US entity for purchasing properties.

That is kind of the setup with this one. However, they are not concerned with interest payments. They basically want the money invested and the profits (whether that be cash flow or capital gains) split. They actually live out of the country, so it's not setting up a fund, pushing money out and then bringing it back in.

To tell you the truth, most accountants and atty's in my area are going to have no idea what I'm talking about. It happens a lot. I'll bring an idea, say "purchasing a sub2" to them and they either a. think it's too risky and disagree with it working or b. really don't understand what's going on and give the wrong advice. I've realized that the majority of CPA's and Attys are not the 'all knowing professionals' that people make them out to be.

it seems that with the caribean connection to FL the experts would be knowledgable of this.

Maybe try a big city's bar association.

I only mention the fund structure as it may have benefits.

Have you looked into the book ; "Principles of Real Estate Syndication" by Samuel K Freshman? I have it on order, but it hasn't arrived yet.

Have have note seen that book.

If it has arrived, let me know what you think of it.

I typically learn by doing, so when I looked to do a JV, I spoke to my mentor(s) that have done many.

I am not a good book learner.

I have the book. I purchased it a while ago. It has a lot of information but most of it is very technical legal/tax issues. Overall, not a good book. I was upset to find out that 50% of the book is comprised of "sample documents" including purchase agreements and other basic RE docs. The other portion of the book is very hard to read through.