When creating a Real Estate Syndicate or Fund, you need to consider all of the jobs necessary to make the offering a success. You are starting a new company – and every new company has certain jobs that need to be filled.
Initially, one or two people might do all of them, but if you want to grow, you will need to build a team with the right skill sets that match the jobs you are trying to fill, and that can free up some your your time to go out and pursue more or bigger deals. Below is a list of the top jobs your syndication or fund management team needs to do:
1. Raising capital – this involves networking, follow-up, developing relationships and pre-qualifying investors, offering investment opportunities, receiving and reviewing investor subscription agreements, and getting investors to send in their funds.
2. Investor relations – this involves preparing investment summaries, answering investor questions, providing status reports, coordinating meetings/webinars, maintaining an investor management platform, uploading tax documents, etc.
3. Finding and analyzing deals, and submitting offers – specific tasks may include cold-calling or sending letters to property owners and real estate brokers, gathering data on prospective deals, crunching the numbers to determine offer prices, and making offers
4. Coordinate and conduct due diligence
5. Oversee the Property Manager and Contractors
6. Maintain or review Bookkeeping; coordinate tax returns with CPA
7. Hire and Work with real estate and securities attorneys to close deals and to create offerings
8. Contribute At-Risk Capital – this includes contributing (for reimbursement post-closing or conversion to an investment) all of the pre-closing expenses necessary to acquire the deal (you can’t use passive investor funds for this).
9. Guarantee Loans – even non-recourse loans need guarantors with collective net worth equal or greater than the loan amount
10. Maintain books and records for the property and for investors and work withholding CPA to file tax returns in accordance with the operating agreement
These are the type of things we discuss on our weekly Clients-Only masterminds. If you are a current or past client, you are always invited to attend. We hold them on Wednesdays at 12:00 pm ET. Please email info@SyndicationAttorneys.com and we will send you the link.
If you want to be invited to our weekly clients-only masterminds, schedule a call and ask about our low-cost pre-syndication agreement that will get you access to the masterminds plus some other clients-only perks, like an Investor Marketing Plan template, an Investor Relations Blueprint, a Pitch Deck that you can customize to teach investors about syndication, and more…
Please schedule an appointment at SyndicationAttorneys.com/Consultation to learn more.