b'How to Legally Raise Private MoneyIn a specified real estate offering, you will typically obtain institutional financing for a portion of the project and raise the remaining amount from investors for the rest of the acquisition costs. Typical acquisition costs include such things as the down payment, legal fees, due diligence ex-penses, capital improvements, closing costs and an acquisition fee to the syndicator. For a development project, all of the money might be raised from private investors until the project is developed to a point where it is possible to obtain institutional financing. A construction loan or perma-nent financing becomes possible when the project begins to produce cash flow through rental income or the sale of units. If you are starting a small business you might obtain a small business loan for a portion of the financial needs, or you might raise all of the mon-ey needed from private investors to start and operate the company until a small business loan or venture capital is available. Some small business loans require two years of operations, and venture capitalists will typically want to see something more developed than a good idea before they will consider investing. In both cases, with a specified offering, the investors earnings are based on the acquisition or development of a specific asset. If you have trouble getting the property occupied or your financial projections dont come to fruition, your investors returns will suffer. Blind Pool Blind pool syndications involve raising money from investors before any specific property or business has been identified for acquisition. The funds from private investors are typically pooled in a single legal entity that acquires multiple assets. What can you do with a blind pool fund? Blind pools can be used for any type of real estate asset class as well as to buy promissory notes, or to form a hard money lending fund. As an example, a real estate blind pool fund might target multifamily properties ranging in size from 100 to 300 units in the central United States. Additionally, you could raise a blind pool fund to invest in others securities offerings. This investment strategy is called being a fund of funds or private equity company.In a non-real estate context, you might raise money in a blind 28'