The Making Of A Real Estate Limited Partnership

A Real Estate Limited Partnership
A limited partnership is a method of raising money that can be used by any type of business. State statutes regulate partnerships, and the sale of limited partnership investments are considered securities that are regulated by state and federal regulations. Because of this, I recommend you read a good book on the subject and that you do your homework. I would recommend Nolo press book "The Partnership Book" as a place to start. www.nolo.com

Here we will provide you with examples of all the paper work that was used for a Limited Partnership with the intended purpose of raising funds to construct a self-storage facility. This information is intended to give you ideas and incite on how a deal is put together. Each project is unique and you must develop your own terms and conditions to fit the state statutes for your state, and the specific needs and requirements of your project. Competent legal council is recommended.

I sold the investment units in our example one at a time by telling everyone I knew that I was doing a development project using a partnership of investors to fun the project. If the person showed interest I tried to sell them a investment unit. The investment packets including letters and prospectus were sent out to potential investors in a presentation folder. All printing was done on quality paper with a laser printer.

I will give examples of:
1. Letter To Potential Investors
2. Prospectus
3. Subscription to limited partner units.
4. Referral Form
5. General partners Resume

Other Documents:
Other documents included, The actual limited partnership contract, the project feasibility study, copies of the property escrow agreement, copies of the investment escrow agreement, State partnership filings, and other documents specific to the deal.

Follow Up Sales Letters Follow Up sales letters were sent out every two weeks with the copy reflecting a greater sense of urgency, as the offering closing date neared. Follow up calls were made to investors as needed. Raising money is a sales job requiring action on your part to overcome the fears and concerns of your potential investors.

Avoiding Security Laws You want your limited partnership offering to be considered a Private Placement, thus avoiding security-filling requirements. The easiest way to do this is to limit the number of investors to ten or less if sales are made in more then one state, and thirty-five or less if all investors reside in only one state. You need to file a partnership filing notice in every state were sales will be made.

The partnership used here in theis example is closed, no solicitation is being made, this information is presented here as educational material only. This is not a solicitation for sale of securities. Anyone having questions can contact the author at jglasgowsr@yahoo.com