Articles from Our Library

What is Real Estate Syndication?

If you have a self-directed IRA or substantial investment funds, you probably have considered investing in real estate. But perhaps you have concluded that you lack the funds to invest on your own. Or maybe you simply don’t want to deal with the hassles of property...

read more

What’s in a Securities Offering?

A Private Placement Securities Offering includes a number of documents, which collectively comprise the Offering Package. Each document has the specific purpose described below: The Private Placement Memorandum The Private Placement Memorandum (PPM) essentially “tells...

read more

How to Structure a Real Estate Syndicate

Although there are numerous ways to structure a commercial income-producing property, the following model describes a typical 2 Class syndicate with equity Investors and a separate management entity. How to Structure a Real Estate Syndicate In the above scenario, you...

read more

Joint Ventures or Securities – What’s the Difference?

Are you selling securities or joint ventures? If you are using other people’s money for your real estate investments, you need to know the difference between a joint venture and a security. The questions you need to ask are: Will investors invest money in a common...

read more

506(b) or 506(c) – That is the Question

First there was Rule 506, under which investors could claim exemption to the requirement of registering securities. Subsequently, in its July 10, 2013, meeting, the U.S. Securities and Exchange Commission (SEC) adopted the new Regulation D, Rule 506(c), authorized by...

read more

Paying Finders Fees in a Real Estate Syndication

Question: What are the rules regarding paying unlicensed “finders” to refer investors to a real estate syndication? The Issuer Exemption Under Regulation D, Rule 506 Since passage of the National Securities Markets Improvement Act of 1996 (NSMIA), in a Regulation D,...

read more

10 Steps to Becoming a Successful Real Estate Syndicator

Here’s a 10-step checklist on how to start a Real Estate Syndication: 1 - Select an asset class Figure out what asset class you want to buy (multifamily, shopping centers, hospitality, self-storage, development projects, single family residential, etc.). 2 - Obtain...

read more

10 Things to do When You Can’t Find Deals That Make Sense

Market cycles are just that – cyclical. The current market cycle is making it hard to find deals. Prices are high; cap rates are low; interest rates are on the rise; and the good deals seem to be drying up. If you have chosen the path of a real estate syndicator, what...

read more

How to Get More Investors for Your Startup

Deciding on an idea for your startup company or real estate deal is just the first step of many on your way to success. In this white paper, we’ll focus on one of the most important steps: Identifying and using the tools you need to market yourself to potential...

read more

Crowdfunding: A Guide to the Basics

CROWDFUNDING YOUR OFFERING What is Crowdfunding? Crowdfunding is simply a method of legally advertising a securities offering via the Internet or other means. The JOBS Act included provisions (Titles II, III and IV) that allow direct advertising of securities on the...

read more

Understanding the Basics of Crowdfunding

What is Crowdfunding? Crowdfunding is simply a means to legally advertise a securities offering via the Internet or other means. The JOBS Act has provisions (Titles II, III and IV) that allow direct advertising of securities on the Internet by private issuers, without...

read more

Determining Investor Suitability for 506(b) Offerings

Question: If I am doing a 506(b) offering, do I still need a pre-existing substantive relationship before I can solicit from an Accredited Investor (AI)?  If “yes,” is there still any waiting period after I get that Accredited Investor to sign a document attesting to...

read more

Splitting Money With Investors in a Syndication

There are a number of ways to split money with investors in a syndication. Real estate syndicators commonly use a couple: a straight-split scenario, or a preferred return scenario. There Are Many Ways to Split Money With Investors Let’s take a closer look at two...

read more

12 Ways You Can Earn Money as a Real Estate Syndicator

A question I often encounter is how one can make money at real estate syndication. Let’s start by addressing what we mean by real estate “syndication.” A real estate syndication is a means for a group of passive investors, organized by a “syndicator” or “sponsor,” to...

read more

What You Should Know Before Investing in a Syndication

Before accepting any investor funds, the sponsor of a syndication is required by securities laws to provide a set of offering documents that explains the terms and discloses the risks of the offering to prospective investors. Here are 10 things to research before...

read more

Dangers of DIY Real Estate Syndication

Suppose you’ve found a smoking-hot real estate investment opportunity but you don’t have the necessary funds outright? Don’t procrastinate; syndicate! But by all means, make sure you use professional help – because do-it-yourself (DIY) syndication can be more...

read more

You Can’t Afford to be in Denial About Securities Laws

If you are raising money from private investors in the United States (other than from hard money lenders who are in the business of lending money), then you need to qualify your “offering” for an exemption from securities registration (by following a specific set of...

read more
error

Enjoy this blog? Please spread the word :)

Share This