What does it take to be a syndicator who has no trouble raising money? Someone who can raise $2 million, $20 million in a matter of days rather than months? Well, the answer is simple. And it actually boils down to just three questions.  By answering these questions, everything will become easier. You’ll be able… Read More »Launching Real Estate Syndications – Launchpad – Founder’s Investment Theory

A private placement memorandum (PPM) is a document valuable to both the issuer and the investor. Every PPM needs to contain certain detailed information about the offering. Since drafting a PPM can be very complex, you may wonder whether you need it. Technically speaking, a PPM is required if you create an offering for non-accredited… Read More »Private Placement Memorandums for Syndications and Funds

In the great movie Moneyball, Billy, played by Brad Pitt, says he wants to bring back an aging ballplayer by the name of David Justice. Everybody thinks it is a terrible idea to bring him back. He can’t hit home runs anymore. They ask Billy why he wants Justice back. Billy points to Pete, played… Read More »Launching Real Estate Syndications – Conclusion – Getting it Done

You’ve done it! You’ve re-entered, you’re back on Earth. You’ve completed this and it’s all done! We started on the launch pad, putting our structure in place, getting our founder investment theory done, and learning about underwriting.  Then we lifted off. We went through all the different things that were necessary before we started latching… Read More »Launching Real Estate Syndications – Conclusion – Putting it Together

Now, you’re outside of the capsule after re-entering. Your investors have gotten money. All is good with the world. Is it time to party? Sure, it’s time to celebrate… but you’ve got to get to the party first! And to do that, you need to go through a closing, just to make sure that every… Read More »Launching Real Estate Syndications – Reentry – Winding Up the Real Estate Syndication

You’ve basically re-entered the atmosphere and you’re on the surface of the earth. Now you just need to emerge from the capsule. And that means making those final distributions to your investors. There are several processes to do this.  First off, there’s a big pot of money now that the deal is closed. So the… Read More »Launching Real Estate Syndications – Reentry – Final Distributions to Your Investors

So you think it’s time to sell? Well, if you structured your syndication the way that I normally do, you’ll want to give investors the right to decide whether or not it’s time to sell the property. That way, they feel like they are a part of the action. A lot of syndicators don’t do… Read More »Launching Real Estate Syndications – Reentry – Voting On Major Decisions

The market has spoken, “It is time to sell.” Many times the decision to sell is up to your investors and you, so you’ll find out how to get the decision made right. Then after it is sold, there are loose ends to tie up and investors to return capital to. They probably can’t wait… Read More »Launching Real Estate Syndications – Reentry – When Is It Time To Sell the Property?

One of the things I like best about being a syndicator is when it comes time to make distributions, especially the final distribution. I like sending money to people, because I know they’re happy to get it and I just did a good job for them. But exactly how do we make distributions?  When you… Read More »Launching Real Estate Syndications – Orbit – Distributions of Returns to Your Investors

Ensuring good property management is critical to syndicating. Your investors are counting on the property being managed in such a way that their asset doesn’t start deteriorating. Under the guise of property management, we have four different kinds of analyses that we need to know as syndicators and asset managers in order to make sure… Read More »Launching Real Estate Syndications – Orbit – Property Management

Asset management is a funny thing. What does an asset manager do? It’s obvious what a property manager does, right? They manage the property. So what’s different about managing an asset? Let’s talk about what it takes to be a good asset manager.  Being a Fiduciary First and foremost, to be a syndicator – which… Read More »Launching Real Estate Syndications – Orbit – Asset Management

“Escrow closed! We own the property!… So, are we done?” Nope. There are things to do besides cashing those monthly fee checks. Your investors expect distributions and to know what is going on. Plus, you need to know what is going on to make sure you can do the next deal. Investor Communications Congratulations, your… Read More »Launching Real Estate Syndications – Orbit – Investor Communications

Liftoff is almost complete, and you’re almost in orbit! Just a few things left to do. You’re collecting money from your investors right now, and now it’s time to finish it up, making the process complete. Just what are those last minute things that you need to do in order to be in orbit comfortably?… Read More »Launching Real Estate Syndications – Liftoff – Finishing the Acquisition

Now you have your syndication put together. You’ve got your PPM, your operating agreement, and the subscription escrows underway. You’ve marketed the investment and had those conversations. You’ve pitched it, and you have some interest.  So what next? How do you get the money from the investor who’s interested into the bank account so that… Read More »Launching Real Estate Syndications – Liftoff – Getting Investor to Commit to Your Syndication

Congratulations, you’ve gotten all your forms together! Now let’s talk about marketing the investment opportunity that you have. How do you put it out there? You’re going to do a lot more marketing in the context of a 506C, then a 506B. This isn’t to say you don’t market in a 506B. But marketing for… Read More »Launching Real Estate Syndications – Liftoff – Marketing the Investment to Investors

We syndicators operate underneath the regulatory framework from the SEC and state laws. But we also operate under another framework too. Fortunately, this one is our own design: the operating agreement.  Just like with a PPM, a lot of syndicators make the mistake of just pulling an operating agreement off the internet and trying to… Read More »Launching Real Estate Syndications – Liftoff – Operating and Subscription Agreements for Syndications

The private placement memorandum, also called the PPM, may be one of the most daunting hurdles for syndicators. They tend to be really long, dense, confusing, and repetitive. But it actually doesn’t need to be that way. Let’s take all the mystery out of it. There are three ways that syndicators do their PPMs. Three… Read More »Launching Real Estate Syndications – Liftoff – The Private Placement Memorandum (PPM)

You found the deal and it is in escrow… “Now what???” Now you need to put the investment itself together and get investors committed. You also need to do it the right way to avoid trouble with your investors and the SEC down the road… Making Sense of the SEC Alphabet Soup We syndicators operate… Read More »Launching Real Estate Syndications – Liftoff – Making Sense of the SEC Alphabet Soup

The product for syndicators is the property. Pricing and engineering that product is the financial analysis. The best syndicators make their choices objectively and based on the data and facts. They tune their projections to maximize both the return for their investors and the return for themselves. And they have meaningful conversations about money –… Read More »Launching Real Estate Syndications – Launchpad – Is It a Good Deal to Syndicate?

Let’s face it: we syndicate not just because it’s fun, but because we want to make money… and not just money for our investors, but money for ourselves. The work that you put in as a syndicator should be paid. But any complexity that comes in on fees or promote will start to scare away… Read More »Launching Real Estate Syndications – Launchpad – Making Money With Fees and Equity in Real Estate Syndications