‘How to Avoid Mistakes Real Estate Syndicators Make’ With Kim Lisa Taylor and Mola Bosland

In this podcast, our very own Securities Attorneys, Kim Lisa Taylor and Mola Bosland, discuss the common mistakes real estate syndicators make and how you can avoid them.  Kim and Mola share some of the things that have caused their clients’ offerings to fail, along with some tips that can help you succeed.

Action Items

• Build an investor database by talking to potential investors daily, networking, and establishing relationships before seeking capital for deals.
• Avoid over-diversifying fund offerings by focusing on a specific asset class and geographic area where you have a proven track record.
• Thoroughly review and understand loan terms, particularly for bridge debt, and seek long-term loans or extensions whenever possible to mitigate risks.
• Hire securities attorneys during the due diligence period when a purchase and sale agreement is signed and after reviewing property financials.
• File securities notices with the SEC and state agencies within required deadlines to avoid fines, loss of exemptions, or regulatory actions.
• Fully disclose compensation structures for the management team to investors in the private placement memorandum (PPM) or explicitly state that compensation amounts are unknown but could be substantial.
• Seek out reputable coaching programs or experienced mentors, particularly for new syndicators, to avoid common pitfalls and develop necessary skills.

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