Blog Posts

To Be Accredited, or Not to Be Accredited

Why Does it Matter and How Does One Get Verified as Accredited? When must investors in a syndication deal be Accredited, and when can Non-Accredited Investors participate in the opportunity? Sometimes the answer is not clear-cut, which is why it’s always a good idea...

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Securities Misconceptions Explained

Are you operating under misconceptions? As a securities attorney, I hear lots of misconceptions from people who think they are NOT selling securities because: “I only have one investor.” Or, “I'm  raising less than a million dollars.” Or, “I have less than 35...

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2 Ways to Split 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. 2 Ways to Split Money Let’s take a closer look at these two ways to split money with...

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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,...

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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...

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Are You Confident Your Marketing Practices are Legal?

Guest Post By Tim Boykin / WealthForge Two cases from earlier this year once again highlight the importance of following the broker registration requirement under Rule 15(a) of the Exchange Act.  Rule 15(a) requires registration for a party engaged in the business of...

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Does Your LLC Need a Business License?

So you’ve formed a limited liability company (LLC) for your real estate syndication business. Do you need a business license, too? Do you need to register with the state tax authority, as well? The article at the attached link from "The Hartford: Small Biz Ahead...

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Can I Just Use a Promissory Note?

I frequently get asked the following questions: “Can I just use a promissory note for investors?” or, “Can I just use an LLC Operating Agreement?” The answer is yes, but … Notes and passive LLC interests are securities. To sell them legally, you still need to qualify...

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What is the Right Entity for You?

As an owner or potential owner of investment real estate, you may have been warned not to take title to real estate in your own name. The reason is to protect your personal assets outside the entity from liability in the event of a lawsuit against you, or in case...

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More Dangers of DIY Real Estate Syndication

In a previous blog post, we began a discussion of why it’s so risky to go the do-it-yourself route when it comes to real estate syndication. We looked at seven major perils involved in drafting your own real estate syndication documents instead of letting a skilled...

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10 Things to Research 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...

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7 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...

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