Category: Syndication and Fund Operations

behavioral finance for regulation D syndicators & fund managers

Behavioral Finance for Regulation D Syndicators and Fund Managers

 The Efficient Market Hypothesis that has dominated financial theory for decades is under attack. Its foundational assumption of perfect rationality among market actors has proven poor at predicting real-world outcomes. Human beings do not behave as ruthlessly logical Mr. Spock-like maximizers devoid of emotion. Growing recognition of the failings

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Operating Agreements Provisions for Rental Property Syndications

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 the benefit of the same limited liability available to a corporation’s stockholders while providing the flexibility to describe the parties’ relationship by contract, without having

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Don’t Be Held Hostage in Syndication Negotiations

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 the fallback solution that the parties seem so eager to come down to. Honestly, I cannot think of a single situation in my life when

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Filling your vacancy: Is this tenant right for your syndication?

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 general, multi-family and office landlords with a large number of units are much less concerned with their tenants’ credit due diligence process, than the retail

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