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 Investment Theory
Structuring Syndication Entities to Protect Yourself
Finding Investors for Your Real Estate Syndication
Finding Properties to Syndicate
Making Money With Fees & Equity in Real Estate Syndications
Is It a Good Deal to Syndicate?
Liftoff of Your Real Estate Syndication
Making Sense of the SEC Alphabet Soup
The Private Placement Memorandum (PPM)
Operating & Subscription Agreements for Syndications
Marketing the Investment to Investors
Getting Investors to Commit to Your Syndication
Your Real Estate Syndication is in Orbit
Distributions of Returns to Your Investors
Reentry of your Real Estate Syndication
When Is It Time To Sell the Property?
Final Distributions of Returns to Your Investors
Winding Up the Real Estate Syndication
Doing Your Own Real Estate Syndication
Welcome to Launching Real Estate Syndications
Welcome to Launching Syndications. In this book, we’re going to take you step by step on how to put a syndication together and give you all the tools that you need to launch your own real estate syndication so you can do it time and time again. You’ll start making money, you’ll get good at working with investors, and people will start seeing you as one of the players and not somebody who’s just servicing the real estate community by doing brokerage.
So let’s go ahead and get started. This introduction is to give you a “forest through the trees” view so you know how this all fits together. We’re going to show you the entire roadmap, the “forest” view, and then we’ll point out each individual tree.
The Investor-Property Funnel for Real Estate Syndications
At the end of the day our goal is to find a syndication, put it together, and then bring investors to close it, operate it, sell it at some point, and pay everyone off. To do this, we know that we need investors, the people who we’re going to be bringing to the deal. And we know that we need properties.
These are the two things that we know we’re going to have to have. So what we do in this system is put them into a funnel. You’ll want to put in as many investors as possible into this funnel. And you’ll want to be looking at lots of properties, and deciding what might be a good fit.
Step 1
The first layer that we sort everything through is our Founder’s Investment Theory. This is how we sort out what’s important to our investors and if the property fits at all. The next layer is the financial analysis. Because it’s critical that the numbers work in order for the deal to make sense to the investor.
Step 2
If the deal meets the Founder’s Investment Theory first, then it passes the financial analysis, we can start putting a deal together. If it doesn’t meet these initial layers, kick it out right away.
Step 3
When we find a deal that works, first we go through “the alphabet soup” to understand what SEC exception we’re going to be relying on. It can direct us in our marketing and in terms of how the deal can be structured.
Step 4
Then we have to write a private placement memorandum, an operating agreement, and a subscription agreement. And those form the basis on how we’re able to do all the next steps in the process.
Step 5
Once the deal is in escrow and the clock is ticking, we need to market the property. And that can look different depending on the decisions that we made during the alphabet soup time. But whatever marketing the property looks like, we need to take those investors and latch them on to the deal.
Step 6
Finally, we need to fund and close the deal. At this point, we’re finally in orbit. We’ve done a lot of the hard work. It’s time to celebrate that that part is done!
But your work as a syndicator is not over. Because we’ve got an annual process that takes place every year. This process includes investor communications, asset management, property management, and making distributions.
At some point, there will come a time when you’re thinking about selling the property. And when it’s time to sell that property, there are certain things that have to be done. First, you have to decide that it’s time to sell, then you may need to vote and get formal approval from your investors that it’s time to sell. You’ve got final distributions to take care of before closing the investment completely.
Around all of these processes, we’ve got a frame, which is the structure of the investment itself. This structure constitutes the entire system. While each individual process is a tree, the syndication structure is the forest.
Now that you see how everything fits together, let’s dive in to help you launch your own syndication and be tremendously successful.
Are you ready to get started with your own syndication and need a private placement memorandum? Moschetti Law Group is a real estate syndication law firm and we’d be happy to meet with you to put together your Regulation D syndication documents and guide you through the process of launching your own offering.
Next: Syndication Founder’s Investment Theory
Tilden Moschetti, Esq., is a highly sought-after syndication attorney with nearly two decades of experience. His clientele ranges from real estate developers and startups to established businesses and private equity funds. Tilden’s expertise in syndication law comes not only from his knowledge of syndication and securities law but from real, hands-on experience as an active syndicator himself in every real estate product type and nearly all markets in the US. His knowledge and experience set him apart and established him as the Reg D legal services leader.
