b'Chapter 14Blind Pool Funds Blindpoolfundsarenotusuallycalledsyndicates,althoughthe mechanism for raising money is identical. The difference is that a blind pool fund involves raising money from investors before any specific property or businesshasbeenidentifiedforacquisition.Thefundsfromprivate investors are typically pooled in a single legal entity that acquires multiple properties. Fund managers raise money based on the investment summary (business plan) for the fund.Blindpoolfundsarethehardestwaytoraisemoneyandaremuchmorecomplicatedthanspecifiedofferings.Blind pool funds can be used to acquire any type of real estate asset class as well as to buy promissory notes, to form a hard money lending fund, or to invest in other peoples syndicates.For a blind pool offering, you will prepare an investment summary (business plan) for your fund, describing:The type of properties in which your company will invest,The criteria the properties must meet to be considered for acquisition,The strategies you will employ to acquire, operate and ultimately dispose of the properties, How you expect to generate profit you can share with your investors and what has to happen before they get their original investment back, The track record and relevant experience of your asset manager team members.119'