Syndication Articles
What Happens if I Don’t Dissolve My LLCs?
If you want to raise capital and be a syndicator, you have a fiduciary obligation to your investors to properly form, operate and dissolve the companies you create in connection with your offerings. The proper way to terminate a company is to file the appropriate...
How Do I Determine Investor Splits?
Start by answering this question: What is the overall average annualized cash-on-cash return (AAR) for the project? If you don’t know how to calculate this, please follow the steps below. If you don’t want to do this yourself, there are plenty of deal-analyzer tools...
Mobile Home Park Investing: The Affordable Housing Alternative to Multifamily, with Mario Dattilo
How Do I Calculate ‘Annualized Returns’ for Investors?
Annualized returns are calculated by adding up “distributable cash” both from cash flow during the operation of your investment property and “equity” realized on eventual resale. Distributable cash from operations is the cash remaining after paying staff, operating...
How Should I Structure the Entities for a Development Project?
For development projects (or possible development projects), we recommend using 3 LLCs as follows: A single-purpose venture/title-holding entity (SPV) — This LLC will hold title to the property and will become the borrower for any subsequent construction loan, A...
How to Build Your Empire Investing in Small Apartment Projects Close to Home, With Chris Pomerleau
Can I Accept IRA Funds From Investors in My Syndicate or Fund?
There are no restrictions on accepting IRA funds for purchasing directly owned real estate, allowing you to raise up to 100% of your funds from pension funds. However, if you invest in non-real estate assets or securities in others' real estate offerings where you...
Is Your Offering Viable?
Related Content Article: Is Your Offering Viable?
What is a Minimum/Maximum Raise?
The minimum is the absolute minimum amount a syndicator can raise from investors and still be able to close, meaning you are not collecting an acquisition fee or getting reimbursed for pre-closing expenses, and may not have all the capital improvement budget raised...
How to Legally Compensate Capital Raisers and Finders and What Happens When You Don’t
How to Legally Raise Money for a First Deal in Apartment Syndication, with Ola Ibiwoye
Are you interested in getting into apartment syndication, but don’t know how to raise money for your first deal? Raising capital can be a daunting task, but it’s important to do it legally and ethically. In this podcast, Kim Lisa Taylor explains the process of legally...