Syndication Articles
Which Fund Structure is Right for You?
There are multiple ways to set up a private equity fund. The most common types are described here. FUND STRUCTURES Whole Fund Model Under the “Whole Fund” or “Blind Pool” model, investors purchase interests in a pooled investment fund (the Fund), which is usually...
3 Reasons NOT to Do a Joint Venture with Investors When Raising Capital
The following question was recently asked of our firm: “If I’m raising less than $1 million, do I still have to follow securities laws? Can’t I just do a joint venture?” The amount of money you are raising doesn’t matter. What determines whether something is a joint...
What Do I Need to Know About Syndicating in the Wake of the Coronavirus Pandemic?
What Do I Need to Know About Syndicating in the Wake of the Coronavirus Pandemic? The syndication market has slowed. Proceed with caution.Give yourself long escrows and extra extensions on any new projects right now, as investors are slow to act and those whose funds...
Can I Raise Capital Through Regulation D, Rule 506 for an Opportunity Zone Project?
Can I Raise Capital Through Regulation D, Rule 506 for an Opportunity Zone Project? You can raise money for an Opportunity Zone project under the Regulation D, Rule 506 securities exemption the same as you can for any other securities offering. You need to decide...
How Do We Delegate Responsibilities Among the Management Team of a Syndicate?
How Do We Delegate Responsibilities Among the Management Team of a Syndicate? First, you need to think about the organization structure within your company.You should list all of the responsibilities associated with your project and then delegate them amongst the...
What if the Terms of Our Deal Change After We Have Already Shown it to Investors and Some Have Invested?
What if the Terms of Our Deal Change After We Have Already Shown it to Investors and Some Have Invested? You are required to provide investors with all material facts that would affect their decision to invest with you. If you have changed the terms they reviewed when...
5 Things You Can Do in Your Downtime to Further Your Syndication Business
How Do I Satisfy the Lender’s Requirement That I Provide 20% of the Needed Funds for a Development Project?
How Do I Satisfy the Lender’s Requirement That I Provide 20% of the Needed Funds for a Development Project? This is the typical syndication model. If you don't have your own funds to cover the balance between the construction loan and the funds needed to complete...
How and Where a Syndicator Can Network for Investors
Meeting—and then developing meaningful relationships with—investors is key to your success in real estate syndication. Here is insight on how to accomplish that. Regularly Attend Local Events Sam Freshman, author of the book, “Principles of Real Estate Syndication,”...
How to Get Family Offices to Invest in Your Real Estate Syndicate
SEC ‘Blacklist’ Shines Spotlight on Companies Making False Claims to Investors
Did You Know that the U.S. Securities and Exchange Commission (SEC) maintains a list with the names of companies that “falsely claim to be registered, licensed and/or located in the U.S.” while soliciting U.S. investors? What’s unbelievable is that there are even...
Navigating Private Lending Laws
Question: What laws apply if you are raising funds from private lenders to: a) fund your real estate investing or private lending business, or b) if you are loaning their funds to others? When Securities Laws Apply If you are borrowing or pooling funds from private...