How to start a real estate investment fund? (would this be considered private equity?)
So I've been giving much thought about future goals in my life and something that peaks my interest is starting a real estate investment fund (100 million sized fund particularly). 

I know this is EXTREMLEY hard so no need to destroy my dreams. A mentor of mine is the founder and CEO of a private equity company (pretty large one) and I admire him a lot. 

So I'm assuming to start one I'd first need to have a solid plan in what type of real estate my group would invest in (retail, office, multi-family etc) then I'd need to amass a large amount of investments from wealthy individuals or institutions. I would only need around 4 people to manage a fund of this size (100 mill) correct or maybe just 3? 

What kind of licenses if any would I need for this? Also would this technically be a REPE? 

Thanks 
[{"id": "dtlm06n", "text": "Very similar long term goal here.  I would love to talk!  I will pm you. ", "replies": [], "depth": 1}, {"id": "dtlm598", "text": "Let\u2019s say I\u2019m an investor.  What experience do you have that would make me trust you with millions of dollars?\n\nIf this is your career goal, your best bet is to get an analyst job with a REIT and get some experience.", "replies": [{"id": "dtlmb18", "text": "This is obviously a far off goal. I'm hoping to start it around 30. I graduate college in may and am getting hired by a commercial real estate brokerage/ investment group. That is where I will learn and grow. ", "replies": [{"id": "dtlu0bm", "text": "There aren't many funds run by 30 year olds.  40 is a bit more realistic. If you don't have family money/connections, save as much as you can.  You will need it.  Good luck!", "replies": [], "depth": 3}, {"id": "dtmpzf1", "text": "Better keep an eye on the short term.  CRE investment brokerages like M&amp;M burn through 10 college grads to find one with the hustle to make it.", "replies": [], "depth": 3}], "depth": 2}, {"id": "dtln1bd", "text": "I second this, you need lots of experience. Start small and prove your success through a number of smaller deals. Once you have a track record you can prove to investors that you\u2019ve been successful. The you\u2019ll see money trickle in, maybe a couple hundred thousand to start. The titans of the industry didn\u2019t start large, they took one deal and slowly grew it. It takes time but if you are patient and smart the success will come.\n\nYou have a lot to learn but plenty of time to learn it. Start off in brokerage then maybe move to CRE lending, then maybe investments. There is so much to real estate it isn\u2019t as simple as buying and making money. Read as much as you can, learn to speak the language. You\u2019ll learn the most once you hit the lending/investment/asset management sector....and you\u2019ll also see how creative people can be to make money.\n\nP.S. A $100MM fund will need more than four people. \n\nSource: I am a RE investor, started my career with property management, now I work for a large CRE lender and I\u2019ll move on from there.", "replies": [{"id": "dtlqqoa", "text": "Depends what the fund is doing. If fund is developing yah they\u2019ll need more than 4 people. If the fund is investing in core assets, value add, or equity to developers then 4 would be enough for a small fund of that size. ", "replies": [{"id": "dtlv6xc", "text": "How do you expect to staff accountants, assistants, lawyers, maintenance, property managers plus the owner and investment staff with just four people? Sure you could outsource a bit but it\u2019ll cost you more.", "replies": [{"id": "dtlvnhr", "text": "I have a buddy who runs a one man fund. When you\u2019re just starting to deploy capital, it doesn\u2019t make sense to pay for all that stuff in house. Sure once you have 100mm deployed and are collecting 2mm in fees that\u2019s feasible. But until then it makes more sense to outsource what you can. Accounts, lawyers, property managers. Hell I know of a multibillion dollar fund that outsources most of that stuff.", "replies": [{"id": "dtmpuwp", "text": "Not sure what you plan on investing in but 2% annual fees on a portfolio that might only yield 5-7% anyways is pretty aggressive.  Maybe if you ran an apartment fund, focused on value add investments, and managed your own real estate you could generate that sort of income on 100m OPM.", "replies": [{"id": "dtn1ivh", "text": "I am in a couple of different funds with market 2/20 cost structure. Some take development risk (say, building at 9% yield to cost and selling at 6.5% cap rate), some buy distressed, others buying value add. You achieve big returns by taking on alot of debt (and alot of risk along with it).", "replies": [], "depth": 7}], "depth": 6}], "depth": 5}], "depth": 4}], "depth": 3}, {"id": "dtrw4rq", "text": "You think more than 4? I know a PE group that has over 500 Million and only 5 guys work in it. ", "replies": [], "depth": 3}], "depth": 2}, {"id": "dtmjv6s", "text": "Best advice here. We have so many interns come in our office (development)  with all these dreams and plans and end up not learning shit because their heads are in the clouds so they ignore the important little things that seem tedious and hard. Just keep your head down work your ass off and absorb as much knowledge as you can. Then start working towards your dream once you know how to get there! Good luck! ", "replies": [], "depth": 2}], "depth": 1}, {"id": "dtlql4k", "text": "You need to pick a niche. The best people in the business have something they are very good at. Raise money from family and friends and establish a track record. Or go into a fund and make contacts and find people that will invest with you based on your performance there. \n\nYou\u2019ll need to register with the SEC for your private placement since LP interests in your fund will be securities. A law firm can help you with that. \n\nHard part is building the track record and raising funds. ", "replies": [], "depth": 1}, {"id": "dtm738a", "text": "This is also my ultimate aim. I currently run a specialist housing association in the UK and have worked with REITs and other PE funds for the last few years -the model is something I am familiar with, although the legal/ regulatory side of it is something I am not familiar with at all. \n\nI have found that reading the prospectuses of new entrants to the market is a useful way to gather current and relevant information, and find out more about the other types of party you need to engage in the course of business. ", "replies": [], "depth": 1}, {"id": "dtm929g", "text": "You should read the book Hedgehogging by Barton Biggs.  It's about the challenges of raising capital for a new hedge fund, which is similar enough from an investor psychology perspective.  Also a very entertaining and easy read.", "replies": [], "depth": 1}, {"id": "dtmeych", "text": "Did u ask your mentor?", "replies": [], "depth": 1}, {"id": "dtml6vf", "text": "I would suggest becoming an Analyst for a commercial brokerage firm, if you're as young as I suspect you are, it's important to be in a position where you see heavy deal flow and can see a large amount of properties. By developing your niche and skills you can start to gain knowledge and personal preference into what asset you understand best. Baby steps man, you'll get there. ", "replies": [{"id": "dtrwbez", "text": "I currently have an internship with the best CRE brokerage and manager in my city, and I\u2019m hoping at the end I get a job offer from them! ", "replies": [], "depth": 2}], "depth": 1}, {"id": "dtns2dm", "text": "I would suggest you join the site called biggerpockets.com and search for Real Estate syndication. You can also search in youtube.com ... ", "replies": [], "depth": 1}, {"id": "dtshxn5", "text": "Very hard to raise that kind of money without a proven track record and the infrastructure to put that money to use efficiently.  Most companies are in the red for the first couple of years before they get their first promote.  I think you should either get your CFA and get into investment banking and raise money for real estate for those skills.  I am not sure why anyone would give you their funds.  What do you bring to the table that every other established private equity real estate firm doesn't have?", "replies": [], "depth": 1}, {"id": "dtuy76b", "text": "Is this a shitpost?\n\nYou intern at a local brokerage firm and just want to start a $100M fund?\n\n...this is like some /r/wallstreetbets type shit ", "replies": [{"id": "dtvha1u", "text": "Obviously this is hard to do, but can\u2019t I have dreams? There is hundreds if not thousands of funds like this in the world. Someone with a dream started those....no need to be a cock sucker. ", "replies": [], "depth": 2}], "depth": 1}]