Frequently Asked Questions

Do you have a question about syndication of a general nature that the Syndication Attorneys, PLLC team can answer for you and other readers on this page? Click here to submit your questions.

Is This Ad Legal?

An advertisement containing the following language was forwarded to me, with the question, “Is this ad legal?” 12+% AVERAGE CASHFLOW!! 82+% 5-YEAR INVESTOR RETURN!! The ad went on to show photos of a multifamily property, discussing the status of...

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Should I Become an ‘Accredited’ Investor?

Newbie investors who encounter opportunities that are open only to Accredited Investors sometimes wonder, “Should I become an Accredited Investor?” The fact of the matter is that “Accredited” is not something one “becomes;” you either meet the...

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Are Rule 506 Offerings Exempt from Blue Sky Laws?

Rule 506 offerings are exempt from further regulation at the state level, except that issuers must: Be able to demonstrate to state regulators how they followed the applicable 506 rules, Not pay any fees to unlicensed brokers (most states have this...

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How Does Cash Flow in a Syndicate?

Here is how cash flows in a Syndicate (as drafted by Syndication Attorneys): On acquisition  Investor funds are collected in the Investor LLC Operating Account. When it is time to close on the Property, the Manager LLC (Manager) – Note: this is not...

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How Do I Split Money With Investors?

There is no “right” answer on how to split money with investors. The answer depends on the deal and your investors. You may not need any track record if you have friends and family who believe in you and what you are doing. At Syndication...

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How Do I Structure a Small Deal With Investors?

From a securities legal standpoint, you could do a joint venture (JV) or member-managed LLC, where the investors are actively involved and stay in control of their own money, if you don’t want to have to comply with securities laws. The mistake...

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5 Steps To Choosing Your Branded Company Name

5 Steps To Choosing Your Branded Company Name Do a Google search to see if anyone is already using the name or something similar. Check GoDaddy or another domain provider to see if the domain is available. If both of those fly, then check the...

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What is a Consent Resolution?

A consent resolution is a specific document giving you authorization from the members/managers of each of your companies to proceed with the purchase and the loan and designating one or more of the members of the manager as the authorized...

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What’s a Subscription Agreement?

A Subscription Agreement is a legal document in a securities offering package that contains an investor’s representation and warrantees that they meet the financial qualifications to invest, understand the risks, have read all of the documents,...

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Where Can I Find Big Investors for my Deals?

Looking for large investors can be a dead end for many syndicators until they have significant syndication experience. A lot of new syndicators spend tons of time seeking “whale” investors only to learn they are notorious for backing out or...

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Should I Just Use an LP or Syndication?

This is like comparing apples to oranges. For every Syndicate, there are 2 parts; one is what business structure you will use (LLC, LP, TIC, DST, promissory notes, etc,) and the other is what securities exemption you will use to legally raise...

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