Syndication Articles

How do I Create a Substantive Relationship?

How do I Create a Substantive Relationship?

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...

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How do I Invest in a Rule 506(c) Offering?

Want to invest in a Rule 506(c) offering? Here is what you must do:  In order to claim the Rule 506(c) exemption, the issuer of the securities you want to purchase must be able to demonstrate they took “reasonable steps” to ensure that all investors are...

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What Entity Should I Use to Make Offers on Real Estate?

You should create a “Brand LLC” that you will use to make offers. It will either be used as the Manager LLC of a syndicate or it may be used as your representative member in the management of a syndicate if there are other management team members for a specific deal....

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Can My Real Estate Fund Hire Employees?

Typically, a Fund operating agreement does not contemplate or authorize the direct hiring of employees. It can be a mistake for an entity that has investors to hire employees, as you start mixing up liabilities (investor liabilities and employee liabilities). One...

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Is Your Offering Viable? 

How can you tell if your offering is viable? You must overcome two hurdles in order to have a viable offering:   Is it legal? Is it marketable? Hurdle 1: Is Your Offering Legal? The first hurdle — “Is it legal” — is easily answered: If you are raising money from...

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