The Efficient Market Hypothesis that has dominated financial theory for decades is under attack. Its foundational assumption of perfect rationality among market actors has
Raising capital legally for a real estate syndication, private equity fund, or other private investment offering requires navigating complex securities regulations. While daunting, this process
Finding investors for a Regulation D offering without a broker-dealer is a strategic game. It’s all about leveraging your knowledge, building alliances, and making smart
The SEC offers a collection of rules under Reg D where an individual or entity can offer and sell securities without registering the transactions with
The Investment Company Act of 1940 (ICA) is a federal law that regulates mutual funds and other investment companies. It is an important piece of
Reg D (aka Regulation D) is a Securities and Exchange Commission (SEC) regulation comprised of various rules related to private placement exemptions. It enables certain
The world of securities law and regulation is a complex one, with legal principles that often leave the average syndicator perplexed. But it doesn’t have
The Securities and Exchange Commission (SEC) is one of the most important regulatory bodies in the United States. It is responsible for ensuring that investors
Real estate syndication is a powerful tool for investors to achieve their financial goals. It’s an exciting way to diversify your portfolio and build long-term
What is a Private Placement Memorandum (PPM)? A Private Placement Memorandum (PPM) is a document that provides detailed information about a private placements to potential
Section 4(a)(2) of the Securities Act of 1933 and Regulation D (Reg D) are both exemptions from the registration requirements for securities offerings. However, they
Regulation S allows domestic issuers to sell certain securities to non-us persons. Almost always, syndication attorneys will combine the Regulation S exemption with the Regulation
Raising capital is a critical step for any startup or small business. One of the most common ways to raise money is by selling securities,
Reg CF and Reg D are two options for startups and small businesses looking to raise capital through syndication. Both options allow companies to offer
When it comes to raising capital, companies have a variety of options to choose from. Two popular exemptions to securities registration are Regulation A (Reg
What is syndication? Syndication refers to the process of bringing together a group of investors, known as a syndicate, to participate in a financial transaction
Form D is a filing with the Securities and Exchange Commission (SEC) which allows sponsors to sell securities to raise capital under the SEC’s Regulation
Syndicators looking to raise capital from investors in Missouri should be aware of Missouri’s Blue Sky Laws. These laws regulate the securities industry within the
Syndicators looking to raise capital from investors in West Virginia should be aware of West Virginia’s Blue Sky Laws. These laws regulate the securities industry
The Wyoming Blue Sky Laws are essential knowledge for syndicators aiming to raise capital from investors within the state. These laws provide a regulatory framework
Wisconsin Blue Sky Laws are critical to be aware of for syndicators looking to raise capital from investors in Wisconsin. These laws regulate the securities industry
Syndicators looking to raise capital from investors in Washington should be aware of Washington’s Blue Sky Laws. These laws regulate the securities industry within the
Syndicators looking to raise capital from investors in Virginia should be aware of Virginia’s Blue Sky Laws. These laws regulate the securities industry within the
Syndicators looking to raise capital from investors in Vermont should be aware of Vermont’s Blue Sky Laws. These laws regulate the securities industry within the
Syndicators looking to raise capital from investors in Utah should be aware of Utah’s Blue Sky Laws. These laws regulate the securities industry within the
Texas Blue Sky Laws serve as the regulatory framework for the securities industry within the state. Syndicators aiming to raise capital from investors in Texas
Syndicators looking to raise capital from investors in Tennessee should be aware of Tennessee’s Blue Sky Laws. These laws regulate the securities industry within the
Syndicators looking to raise capital from investors in South Dakota should be aware of South Dakota’s Blue Sky Laws. These laws regulate the securities industry
Syndicators looking to raise capital from investors in South Carolina should be aware of South Carolina’s Blue Sky Laws. These laws regulate the securities industry
Syndicators looking to raise capital from investors in Rhode Island should be aware of Rhode Island’s Blue Sky Laws. These laws regulate the securities industry
Syndicators looking to raise capital from investors in Pennsylvania should be aware of Pennsylvania’s Blue Sky Laws. These laws regulate the securities industry within the
Syndicators looking to raise capital from investors in Oregon should be aware of Oregon’s Blue Sky Laws. These laws regulate the securities industry within the
Syndicators looking to raise capital from investors in Oklahoma should be aware of Oklahoma’s Blue Sky Laws. These laws regulate the securities industry within the
Syndicators looking to raise capital from investors in Ohio should be aware of the Ohio’s Blue Sky Laws. These laws regulate the securities industry within
Syndicators looking to raise capital from investors in North Dakota should be aware of the North Dakota’s Blue Sky Laws. These laws regulate the securities
Syndicators looking to raise capital from investors in North Carolina should be aware of North Carolina’s Blue Sky Laws. These laws regulate the securities industry
Syndicators looking to raise capital from investors in New York should be aware of the New York’s Blue Sky Laws. These laws regulate the securities
Syndicators looking to raise capital from investors in New Mexico should be aware of the New Mexico’s Blue Sky Laws. These laws regulate the securities
Syndicators looking to raise capital from investors in New Jersey should be aware of the New Jersey’s Blue Sky Laws. These laws regulate the securities
Syndicators looking to raise capital from investors in New Hampshire should be aware of New Hampshire’s Blue Sky Laws. These laws regulate the securities industry
Syndicators looking to raise capital from investors in Nevada should be aware of Nevada’s Blue Sky Laws. These laws regulate the securities industry within the
Syndicators looking to raise capital from investors in Nebraska should be aware of the Nebraska’s Blue Sky Laws. These laws regulate the securities industry within
Syndicators looking to raise capital from investors in Montana should be aware of Montana’s Blue Sky Laws. These laws regulate the securities industry within the
Syndicators looking to raise capital from investors in Mississippi should be aware of Mississippi’s Blue Sky Laws. These laws regulate the securities industry within the
Syndicators looking to raise capital from investors in Minnesota should be aware of Minnesota’s Blue Sky Laws. These laws regulate the securities industry within the
Syndicators looking to raise capital from investors in Massachusetts should be aware of the Massachusetts’s Blue Sky Laws. These laws regulate the securities industry within
Syndicators looking to raise capital from investors in Michigan should be aware of Michigan’s Blue Sky Laws. These laws regulate the securities industry within the
Syndicators looking to raise capital from investors in Maryland should be aware of the Maryland’s Blue Sky Laws. These laws regulate the securities industry within
Syndicators looking to raise capital from investors in Louisiana should be aware of the Louisiana’s Blue Sky Laws. These laws regulate the securities industry within
Syndicators looking to raise capital from investors in Kentucky should be aware of the Kentucky’s Blue Sky Laws. These laws regulate the securities industry within
Syndicators looking to raise capital from investors in Maine should be aware of Maine’s Blue Sky Laws. These laws regulate the securities industry within the
Syndicators looking to raise capital from investors in Kansas should be aware of the Kansas’s Blue Sky Laws. These laws regulate the securities industry within
Syndicators looking to raise capital from investors in Iowa should be aware of the Iowa’s Blue Sky Laws. These laws regulate the securities industry within
Syndicators looking to raise capital from investors in Indiana should be aware of Indiana’s Blue Sky Laws. These laws regulate the securities industry within the
Syndicators looking to raise capital from investors in Illinois should be aware of Illinois’s Blue Sky Laws. These laws regulate the securities industry within the
Syndicators looking to raise capital from investors in Idaho should be aware of Idaho’s Blue Sky Laws. These laws regulate the securities industry within the
Syndicators looking to raise capital from investors in Hawaii should be aware of the Hawaii’s Blue Sky Laws. These laws regulate the securities industry within
Syndicators looking to raise capital from investors in Georgia should be aware of Georgia’s Blue Sky Laws. These laws regulate the securities industry within the
Florida Blue Sky Laws are an important consideration for syndicators who aim to raise capital from investors in the state. These laws govern the securities
Syndicators looking to raise capital from investors in the District of Columbia should be aware of the District of Columbia’s Blue Sky Laws. These laws
Syndicators looking to raise capital from investors in Delaware should be aware of Delaware’s Blue Sky Laws. These laws regulate the securities industry within the
Syndicators looking to raise capital from investors in Connecticut should be aware of Connecticut’s Blue Sky Laws. These laws regulate the securities industry within the
Syndicators looking to raise capital from investors in Colorado should be aware of the Colorado’s Blue Sky Laws. These laws regulate the securities industry within
California Blue Sky Laws are an essential factor that syndicators looking to raise capital from investors in California must consider. These laws are at the
Syndicators looking to raise capital from investors in Arkansas should be aware of Arkansas’s Blue Sky Laws. These laws regulate the securities industry within the state
Syndicators looking to raise capital from investors in Arizona should be aware of the Arizona’s Blue Sky Laws. These laws regulate the securities industry within
Syndicators looking to raise capital from investors in Alaska should be aware of the Alaska’s Blue Sky Laws. These laws regulate the securities industry within
Syndicators looking to raise capital from investors in Alabama should be aware of Alabama’s Blue Sky Laws. These laws regulate the securities industry within the
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
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
In the great movie Moneyball, Billy, played by Brad Pitt, says he wants to bring back an aging ballplayer by the name of David
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
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?
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
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 market has spoken, “It is time to sell.” Many times the decision to sell is up to your investors and you, so you’ll
One of the things I like best about being a syndicator is when it comes time to make distributions, especially the final distribution. I
Ensuring good property management is critical to syndicating. Your investors are counting on the property being managed in such a way that their asset
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.
“Escrow closed! We own the property!… So, are we done?” Nope. There are things to do besides cashing those monthly fee checks. Your investors
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,
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
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
We syndicators operate underneath the regulatory framework from the SEC and state laws. But we also operate under another framework too. Fortunately, this one
The private placement memorandum, also called the PPM, may be one of the most daunting hurdles for syndicators. They tend to be really long,
You found the deal and it is in escrow… “Now what???” Now you need to put the investment itself together and get investors committed.
The product for syndicators is the property. Pricing and engineering that product is the financial analysis. The best syndicators make their choices objectively and
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,
It probably goes without saying, but finding properties is pretty critical for a syndicator. Without a property, there’s nothing for us to talk to investors
The bad news is that you cannot just put some stuff up on the internet and magically expect to find investors. It just doesn’t
There are two different kinds of decisions that we need to make in order to protect yourself from the very beginning from deals going
Table of Contents Introduction to Launching Real Estate Syndications Welcome to Launching Real Estate Syndications (You Are Here) The Real Estate Syndication Launchpad Syndication Founder’s
How Do I Raise Capital for Real Estate? The real estate business can be very profitable, but to start, you’ll need a proven track record
Real estate syndication refers to the practice of combining multiple real estate investors’ assets to carry out a large commercial transaction. (Learn more about what
One of the most lucrative ways to obtain easy passive income is to pool funds with other investors to buy income-producing real estate. This simple
Click here to see our special series ‘Launching Real Estate Syndications’ What is Real Estate Syndication? You may be asking, “what is real estate syndication?”
The world of real estate private equity offers immense potential rewards for fund managers, sponsors, developers, and real estate professionals, but navigating the legal and
Many investors with experience in the property market suffer from not having enough capital to go after large-scale projects. As a result, they start wondering
Questions about ‘crowdfunding vs. syndication’ often come up. These days, there are multiple opportunities to enter the real estate market and make a killing, even
How does someone start syndicating real estate? This post will be just a broad overview… If you’d like to get a step-by-step how to guide
Making an offering of securities under the SEC’s Regulation D Rule 506b or Rule 506c comes with many advantages. Both allow you to raise an
Reg D (aka Regulation D) contains a set of rules that allows the leaders of many different kinds of businesses and industries sell securities without
What is an Accredited Investor Under Regulation D? For most cases, an Accredited Investor is an individual whose income is over $200,000/year (for single persons)
Regulation D for Crypto like Funds, Crypto-mining, or Blockchain Businesses, can be a powerful tool. Between 2012 and 2020, the value of Bitcoin rose by
Regulation D for business capital lets entrepreneurs take control of the largest challenge they face: raising capital. This is especially true if you’re running a
Regulation D for Private Equity and hedge funds operate in similar ways. In both cases, the businesses raise money from institutional and individual investors. These
Through Reg D real estate syndication, “small” investors have the opportunity to collaborate to invest in real estate. This opens the door for such investors
Under the Securities and Exchange Commission’s (SEC) Reg D rules, small companies can raise capital through securities without making a public offering. Providing quicker and
The Reg D rules govern the offering or private placement exemptions. There are several benefits to making an offering under this regulation. However, there are
What is Reg D? Before we dive right in to rules, lets set the stage with a definition of Reg D. Regulation D contains a
What Is SEC Rule 506c? Regulation D Rule 506c was enacted in 2012 and was created to allow businesses a way to raise capital from
What Is A Reg D Offering? The world of finance continues to evolve and grow, offering innovative solutions for businesses seeking capital. One such solution
If you are just starting out, a lot of the terminology can be confusing – blue sky laws, Reg D, 506c, Rule 144, etc… But
Investing in property comes in many forms. Investors can explore a broad range of opportunities and asset types in various real estate industry sectors. Some
As a syndication attorney for the Moschetti Law Group, one question I hear many times is, “what’s the best way for me to structure
What does it take these days to invest in real estate and get your hands on an income-generating property? For the average investor, this can
Coming from a background as a real estate agent, team leader, or even a veteran real estate investor can make you think that putting together
What is real estate syndication? Real estate syndication is when (mainly) passive investors pool their money to invest in income-producing and/or development properties with an
One of the most important jobs of a syndicator (and a private placement memorandum) is to educate and inform investors of everything regarding a deal.
With the number of regulations governing the securities market, private and public offerings, with their private placement memorandums (PPM), carry a certain degree of difficulty
In recent years, more and more real estate investors are opting for a limited liability company (LLC). Forming an LLC is ideal primarily because it comes with
Establishing a business entity, like an LLC or corporation, is not an easy task. If you wish to learn how to form a business entity,
For syndicators, the Property managers can be your best asset. Managing property managers can take less time than managing a property and the tenants, but
Would you “split the difference” if two people’s lives were at stake? My guess is no. Yet, in a business world, “splitting the difference” is
When we syndicate real estate and begin looking for real estate investors, it is helpful to look through the eyes of our investors so we
The importance of the tenant’s creditworthiness is directly proportional to the amount of space the tenant will be occupying and your personal risk exposure. In
