b'Chapter 15Funds of Funds Some people think the new panacea for raising private money to invest in real estate (or other businesses) is to create your own fund of funds whose purpose is to invest in other peoples deals. The reasons investors think about this model is because:1.They cant find their own properties, which could be due to a lack of time, knowledge, or effort.2.Or they are trying to build a track record on deals with investors and with lenders.3.Or perhaps they dont have the fund-raising capacity to take down bigger properties on their own that may have better returns than smaller properties. In this case, they look for bigger offerings where they can become part of the asset management team and bring their own investors to the deal.This,thenposesthequestion:HowdoIkeeptheotherasset managementteammembersfromstealingmyinvestorsfortheirfuture deals? Investors think, Hey, why dont I just form my own limited liability company with my own investors and invest in others deals as a single investor? That way, I dont have to give up their contact info and no-one can steal my investors. And I dont have to go out and find my own deals.Its not as easy as you might think and this chapter explains why. For those that want the bottom line up-front, skip to the Key Takeaways at the 132'