Syndication Attorneys Podcast
There is a reason why 4.6 times more private exempt securities offerings are put under Regulation D than Regulation CF. Let’s go through what those differences are so that you can make your own decision on what’s best for your security offering when you’re choosing an exemption between Regulation D and Regulation CF.
So when the big showdown is between Regulation D and Regulation CF, the two major opponents, when it comes to exemptions from registration under the Securities Act, now I there is another opponent out there and we’ll Asterix like here, Regulation A does exist. Regulation A though is a little bit different, because you still make a filing, and it’s reviewed and approved by the SEC. So it’s not like a true like file a form and you’re automatically exempt. So it’s a different kind of opponent. But two big opponents are Regulation D and Regulation CF. Now, let’s talk about the stats and the differences. In one corner, we’ve got Regulation D, the heavyweight champion of the world, with 4.6 times more knockouts than Regulation CF. Why 4.6? Well, first, you’ve got Regulation D breaks up into two different rules. And one of one of those rules is the rule that you’ll pick, if you go with Regulation D, in one corner, you’ve err in one hand, you’ve got Rule 506b. 506b is great. It’s also concert called friends and family because you can take non accredited investors up to 35. And then a 90 day period, and an unlimited number of accredited investors, you can also raise an unlimited amount of money, you’re not stopped at 5 million, 1 million, anything, you can raise $1 trillion. If you can, if you can give me a call, definitely we need to partner up because $1 trillion is a lot of money. And if you can raise that much, well, I want you on my team. But that aside, Regulation D Rule 506b, so the other fist is a great regulation, we can raise an unlimited amount of money from an unlimited amount of accredited investors and the knockout punch for it, you can advertise so you can put a billboard on Main Street, you can plaster the internet with ads, just to get your name out there and get your investment out there. The big trouble with 506c, the one where it gets hit and they’ve got that rule is because we can’t take any non accredited investors. In fact, we actually have to make sure that each one is accredited by having third party verification. But having the ability to raise an unlimited amount of money getting to choose between whether we have non accredited or an accredited investor is a pretty major win for it doesn’t it sound like 4.6 times more knockouts. But that’s not to say that there’s not a lot to be said for the other opponent, Regulation CF. Now, Regulation CF doesn’t break out into different rules like that it just as one rule. So Regulation CF lets you raise money from both accredited and non accredited investors. It lets you advertise. Now, what’s the problem with Regulation CF? Why isn’t it getting more than Regulation D? Two reasons. Number one, it’s got a cap of $5 million $5 million in any 12 month period, kind of a negative. The other big problem with Regulation CF. And to me, this is the biggest problem, you still have to do a filing this time it’s on a Form C versus a Regulation D is on a Form D your stuff to do that filing. But you’ve got to have all of your marketing and all of your transaction go through a registered portal. Ah, what is a registered portal, a registered portal is a third party who puts your name and puts your investment out there and take some of your profit. How much of your profit I’ve heard as much as 10 to 12%, which is a huge, huge chunk. Now maybe there are some that are less that take charge less. But you have to ask yourself if you’re not able to actually put it out there yourself. You’re still You’re gonna be responsible for marketing it to drive all your traffic to this third party portal, that’s not even you, you don’t even get to control that traffic. So you have to be driving your own traffic to this third party portal, where they also have all of your competitors investments as well. And they charge you 10 to 12% for the privilege, and the preparation of all the documents needed for Form C and to comply with Reg CF cost just as much as that in Regulation D. That’s why when it comes to the ultimate battle, to me, I think the clear winner has always been Regulation D and the stats show it 4.6 times more, a lot of people come to me after trying to do a Regulation CF, it just didn’t work out, it was expensive. And a complete flop Regulation D, we can craft a marketing plan with you to make sure that your regular offering is successful. And the the cap on the lit number of accredited investor or non-accredited investors isn’t that much. If you’ve got the right network, if you don’t have the right network, then you only can mark it to your right your accredited investors. But if you’ve got the rights pitch, and you’ve got the right story, your Regulation D offering is gonna be successful. So now it’s time for you to make your own decision on what works best for what you’re offering. To me. It’s always Regulation D. So if you give me a call, wanting to talk about what the two differences are, I’m always gonna say Regulation D, I’m happy to have a conversation comparing and contrasting the two, but just know I’m always going to be on the side of Regulation D, it’s the heavyweight champ and you don’t go against the champ. But I’m always happy to have that Regulation CF is a fine choice. I may be in favor of Regulation D but it’s still a very, very good choice. Regulation CF though has those negatives. And then a plan can be worked out around those in order to solve it through Regulation D. Or if Regulation CF is the right choice for you. That’s great too. Now if we can help you either make that choice or if you need help with your Regulation D offering, give us a call and let’s see if I can help you
So you’re going to do a Regulation D offering. And this video probably applies more to the people who chose to do a 506c offering to advertise, rather than 506b using an established friends and family and network of people that you already know. So you’ve chosen to do that. And you know, you want to put it out there and you want to be successful, but you’re worried that the broker-dealers aren’t going to look at you or want to talk with you, or you just can’t afford them. Because, gosh, they are extremely expensive. So let’s talk about how you can put your Regulation D offering out there how you can market it without relying on broker-dealers.
So you’ve got to put a Regulation D offering out there without relying on broker-dealers, there’s five things that you absolutely must do. And again, like I said, this is assuming that it’s a 506c offering, and your intent ultimately is probably going to be to advertise, you’ll be bringing in of accredited investors only. But you’re not afraid of communicating with people who are not people that you already know. So the first most critical thing more than anything else is establish your founder investment theory. Again, banging the drum founder investment theory is the most important thing. So what is founder investment theory? If you’ve seen some of the other videos you already know, but founder investment theory is really a component of four different things that put together your thesis on why this investment is compelling for your investment investors. Number one, is the strategy that you’re taking. Is this a value add, play a development play an appreciation? We’re just waiting for it to start cash flowing? Whatever it is, what is that strategy that you’re taking, in order to get the money for it? The second most, the second component of founder investment theory, is the philosophy that you’re taking, what asset classes and what, where is it located? If it’s real estate, how does it work? How does it there? And why is that particular asset class compelling? What makes it special? Is it particularly lucrative? Is it particularly speculative? Is it pride of ownership? Is it something more like, well, this, it’s stable? And it always goes, what is that philosophy that underpins it? The third is what is the risk tolerance, that’s implied by the investment itself. So is it very low risk, it’s very high risk, your investors are looking at it comparing the risk to their own risk tolerance to the riskiness of the investment, if it’s extremely stable in a class, a city, if it’s real estate, for example. And it’s, it’s an apartment building in downtown in a class in a very, very major metropolitan area with rents that are, you know, a vacancy rate that’s less than 1%, it’s probably pretty darn safe. If it’s out in the middle of nowhere. And it’s a big construction project, it could be quite a bit more speculative. If it’s a cryptocurrency or a new business with an untold model. That’s a very, very speculative, the risk tolerance changes, you have investors who want to invest in things that are very safe. And there are different sets of investors who want to invest in things that are very risky. You need to find the right mix for this specific investment, and forth. And to me, this is the most important part of founder investment theory. Is the story behind it all. Why do investors want to invest in this thing? If it’s just something that they’ve seen a million times before, then they’re going to only then you’re only competing on numbers, like ROI and things like that, and it’s a snooze fest? If you look at a lot of the ads out there, they are boring, because all they’re talking about is preferred returns and what sort of ROI they’re getting. And none of it can be believed really, right. I mean, a lot of it is marketing and salesmanship and they are all speculative numbers, and you know that every number has been polished there. And so does every single investor who would be thinking about investing in it. But what saves that all is the story if you’re doing something unique and creative and putting something out there into the world. That also is there for a specific reason, and has a story behind it, that is going to resonate with investors. Regardless of what the return on investment looks like it’s going to be it somebody would much rather invest in something that’s novel and that they want to be a part of, if it’s offering a 2% projected return difference on IRR, because those numbers, as I said, are kind of glossy anyway, they’re not real. So founder investment theory is the first most important thing you’ve got to do when you are going to be marketing your investment without a broker-dealer. Number two, you got to put together the marketing materials, you can’t just be out there alone, you got to show up like a pro and pros show up with marketing materials. Now, my firm we put together pre private place memorandums, operating agreements, questionnaires, all those things, all those legal documents help you show up like a pro, but they’re only one piece of it. They’re one part of the component that built the trust with that investor. The other piece of it is how you show up with the marketing materials. If you show up with a piece of paper and crayon dribbled on it, it’s probably not going to impress them. But if you show up with a very good presentation that’s put together in the right way and putting the story first, oh my gosh, you’re going to be way ahead of every other investment off the top, as long as it fits with their own investment profile. That’s the other thing. It’s got to fit with them. Right. That’s why fits know them are what importance. Number three, start with your own network. So even if you’re planning on advertising, you got to tell everyone you know, and you’ve got to market to everyone you know, they can also reach out and help you succeed by finding other investors, other people they know, instantly your network is growing and growing and growing and helping bring you eyeballs to the deal. And other people who may want to be there. The great thing again, found our investment theory isn’t the what will compel them in order to bring those people if it’s something boring, I’m not gonna go tell my friend about this deal. If it’s a snooze fest, right? I’m going to tell them if it’s something like, wow, you know, what my friend Bob’s doing is putting together this thing. And wow, it’s really cool idea. What do you think that gets everybody interested? That’s again, that’s an investment theory, number one. Number four, carefully advertised, you can blow the bank very, very high easily on this one. It’s so easy to spend a lot of money on advertising and consultants and things like that. You don’t need to be cautious and skeptical. And try little little steps. First, make sure you test your marketing. First, don’t spend every dime you’ve got on marketing, because you probably aren’t going to be overly successful with the first campaign you put together. But you probably will be with the fifth one that you put together. And number five of the most important things that you need to do is be a good salesman. And what I mean by that is follow up, follow up, follow up, follow up, follow up, follow up, follow up, I can’t begin to tell you how many investments that I track personally for just because I’m active in the marketplace, and I look at a lot of other deals where I don’t get a single follow up message at all, or I get the same follow up message that’s obviously canned. If I get a personal follow up that’s unique and something compelling. That’s being a good salesman, and that can make the difference between it. What do the really good broker-dealers out there? Do? They follow up with their clients, they call them on the phone, they talk with them and walk them through the decision making process in order to convert them. What are the worst broker-dealers do nothing. They send an email that’s canned, they don’t do anything and then they rely on well, maybe my maybe a half a percent will respond to this email. When I send it out in a blast. Don’t be that person. Be a person who’s proactive, actively salesman and tell the world about what you’ve got offered. If you do that, you will be on top of this game. You will be successful in being able to put your offering out there to the world and have it funded without paying the high fees and the challenges that are associated with using a broker-dealer. My name is Tilden Moschetti. I am a syndication attorney. My My job is to help you be successful. I do that primarily through putting together the operating agreement, the subscription agreement, that private placement memorandum, filing the form d. Ultimately, those are the legal components of it. But I’m also an experienced syndicator. I’ve done a lot of deals for myself, and I’ve seen a lot of deal deals with other people. I can help you with that as well. We offer flat fees, which means take advantage of my time if you’re a client. You can talk to me and strategize about this. You don’t always have to take my advice and you shouldn’t always take my advice, but it’s definitely important to start strategizing and work with people that that understand this game from the boots on the ground level. Again, Tilden, Moschetti If I can be of help to you, give me a call.
Common question is what is a real estate investment trust or a REIT? And how does it differ exactly from a real estate fund or a real estate syndication? Let’s talk about those differences.
Let’s start talking about REITs. Real estate investment trusts. So what exactly are they? And how do they work? Well, a real estate investment trust is a fund of sorts, it is a kind of real estate fund, what it is as it accumulates real estate, and it pays out based on the income of that real estate. So all REITs are required to pay out 90% of their income, that’s derived from rents as dividends to their investors. Now, a REIT really is it’s a sub-classification of the tax code. It’s not a different kind of security, as far as the SEC is concerned, what that means is there are REITs that are structured as Regulation D offerings, there are REITs that are structured as Regulation A offerings, and there are REITs, that are public that have, they’ve gone public. And they do that they meet the minimum requirements, which primarily is a certain amount of ownership needs to be in people other than those managing, and that they pay out that 90% of their income. And that 75% or more of their holdings is in real estate specifically, not necessarily not not bonds or anything like that, but in the real estate itself, and that they also have more than 100 investors that are not part of the management team itself. That’s the basic structure of a REIT. The benefits of a read are that they are very liquid, especially a public REIT, public REITs, you can trade on the stock market, you can log into your brokerage account and make a trade and then sell it the very next hour. So they’re very, very liquid. Whereas with a real estate fund, the private fund, it may be less liquid. Now, private REITs are also going to be less liquid, but they’re going to have specific mechanisms in place in order to get people make it easier to liquefy their positions, so they can sell it at regular intervals. When a REIT is put together, what is oftentimes needs to happen is that figuring out the greatest challenge of net asset value. Now net asset value only comes into play as it relates to private REITs. So private REITs have to figure out net asset value on a regular basis. Most of the ones that I know and have talked to and follow and have consulted with those breeds, they that are private, they do it on a monthly basis. Now monthly is a lot of time, it’s a lot of work in order to adjust your net asset value. But that’s their regular schedule. Public REITs. However, doesn’t matter. The net asset value is computed by itself just naturally by being on the public market. It’s how the public perceives the net asset value and how it changes stock price. So there you might get valuations of you know, 30 $30 based on income or something like that, but basically, the bottom line is that that net asset value is very critical for private REITs and for public REITs not a factor at all, necessarily not a factor as it relates at least as it relates to share price because the share price is determined by the market itself. So let’s go through the main takeaways and key points of REITs and real estate funds. Number one REITs are companies that buy and manage property and generate income from rents primarily, they’re not in the business of selling bit properties for their own sake or counting on appreciation. They distribute 90% of their profits as dividends to shareholders and their main benefit is this massive amount of liquidity. Number two real estate funds and syndications they gather funds from multiple investors for buying, managing, developing selling properties. Generally they have less liquidity, larger minimum investment, but they offer a much wider range of options of things that you can do. This is where the mat the majority of our clients are. We have a very small number of REITs that we help and then we generally Help you’re all the way from your very, very large private equity funds, all the way down to first-time, syndicators. Number three investment in real estate funds. It offers those benefits of diversification and true professional management but it’s subject to that market. volatility. Generally these are smaller, so they have a little bit less holdings than a REIT, which can oftentimes be quite large. As property values decline high fees lock in periods, they also track slightly different than then reads on value. Number four REITs. In real estate funds have different tax implications. REITs dividends are subject to income tax, whereas real estate funds and syndications in general are much more likely to target going being taxed at the capital gains rate. Number five, as a syndicator, or a real estate fund manager yourself, your job is to really consider what’s in it for your investors. And what are you putting this together for? What is your founders investment theory, use that in determining whether going down the road and to the expense and complication of putting together a huge business like a read, make sense? A lot of my players very, very, very large investors who have assets under management of well over a billion dollars are not REITs and will never be REITs and do not want to play that game. They don’t even put together funds. They put together just straight syndications. So your success is not tied to well whether you are a publicly traded REIT or not. It’s put to your success is tied with doing the kinds of deals and the kinds of funds that you want to do and working with the investors that you want to work with. My name is Tilden Moschetti. I am a real estate syndication attorney with the Moschetti Syndication Law Group. I hope this video helped explain that difference between REITs and private equity funds and syndications. If we can help you on your journey, whether it’s to become a read or a private equity fund or a syndicator yourself, give us a call. We can help you stay compliant with Regulation D Rule 506b and 506c and also offering the exit expert guidance to make sure that you get on the path that you’re going and get to the goal that you want to get to.
If I had to boil down the syndication of a real estate development project in the eight steps, what would those eight steps be? Let’s go through them.
My name is Tilden Moschetti. I am a real estate syndication attorney with the Moschetti Syndication Law Group. I’m also a real estate syndicator and developer myself, I thought it would be interesting to break down to distill in to eight difference and an eight step model of what a real estate development syndication project would look like what they look like from a very high level. Now, each of these probably has another 50 different steps. But I thought it would give a unique view of, of what the landscape looks like. So that if you are looking to do a real estate, syndication development project yourself, it might give you an idea of whether or not it’s something that intrigues you, or it’s something that you want to run from, I think it probably will intrigue you enough that you’ll want to keep working on it. But who knows. So let’s go through what those eight steps would be. So number one, is find the suitable property and created business plan. Now, obviously, if you’re going to develop something, you gotta have something to develop on. And you got to know kind of what you’re developing, right. So for the the piece on the business plan, I like to rely on the fit, of course, the founder investment theory, what it is actually, that you’re going to be building should also have a compelling vision behind it, a reason for why an investor would want to invest into this, if you were going to invest in this completely blocked thing that nobody would be very interested at all, you’re gonna have a really hard time finding an investor who’s going to help you out do that. If, however, you’re building this fancy resort, or you’re this beautiful luxury apartments with a with fountains and a lake or if you’re building, you know, the retail center that features some some new novel technology or something like that, that’s compelling, that’s got a story to it, and people investors are going to want to invest. And then you obviously need to find that property where you can do that. And then you need to make sure all the numbers line up. So the business plan needs to be complete with exactly how you’re going to do it. In terms of costs, you got to have pretty early on what those costs roughly are going to look like what the hearts cost side the soft costs. So what that looks like, that way you can start building in a story for your investors. That’s not just an emotional compelling story, but also has a rational, this is what we’re going to do component to it. Number two is start assembling your team, you can not do development alone, you’re going to be out there swinging a hammer yourself, I don’t think so, if development is a big team effort. So you’ve got to start putting those team together, this team is also going to be important for your investors to know who they are, because you’re using their resumes in addition to yours as reasons for them to invest, the more great a people that you’ve got, the more interested in investors going to be to be involved with. So that is also a major part of it as well. It’s great to give, give a helping hand to the people who, who you know, is does great work, but they don’t have a resume to speak for itself. That’s great, but you gotta have some heavy hitters in there as well. And mostly though, you need to make sure that it’s competent, that it’s a team that have players that absolutely can deliver, you’ve got investors money here, you’ve got to deliver for them. Number three, now, you got to find investors, you should have been looking all along, you should always be looking for investors every day of the week, every week of the year, you should be looking for investors growing your investor network. But this is the step now where you’re really finding investors and starting to let them know that you’ve got this project coming along and are they interested, you got to get those soft commits, you got to make sure that the business plan can go forward and then their money is part of it. Step number four is arrange for financing. So you’re going to most likely be using not only investor money and you’re not going to be paying all cash. Most likely most developers use US bank loans or hard money loans or some sort of other form of money in order To complete the project, so you need to start building those relationships with those financers. Whether they’re hard money lenders, or traditional bank lenders, wherever it’s coming from start building those relationships, so that you can get that financing in place, start building that model of what it will look like, from their point of view, how, what’s that interest rate? What are the terms? What is that going to look like? Number five, my favorite piece is putting the syndication together. So that piece of it, this step really is putting those necessary documents together, getting that private placement memorandum done, the operating agreement for your entity, the subscription agreement for your investors, getting it ready for filing with the SEC, as soon as you make a sale of the investment to a investor. Getting all those pieces together, this is an exciting time, because now you’ve got really something to show for. Not only that, not only is it the legal documents, but putting the marketing documents together. And once those are done, it’s getting investors in. So this is all part of that still putting that syndication together. It’s not just the framework of the documents and the marketing material, but it’s also getting the commence from your investors getting them to sign getting that pool of money. Once that money’s there, then you can go on to Step six. And Step Six takes place at a lot of different points. This is just getting those necessary approvals. Development takes approvals from everybody, as you probably know. And so you need to be doing that all along the way so that your project doesn’t stall just because the fire marshal hasn’t signed off on your deal. And it’s now waiting for two years. That’s not a good situation. Number seven, now you see it coming together. Now you’re managing the construction, you can watch it going up in front of your eyes. And it’s a magical and it’s all happening. This is another very exciting part of the development project. Because here it is, all the meanwhile you’re communicating with your investors, and you’re getting them excited. Why are you getting them excited, because you want them to invest in your next development project. So the more excited they are, the more they feel like they’re connected to the project better. Step number eight, marketing and sales, and I’m talking about marketing and sales for the future sale of the project. Now I’m assuming in this video that it’s just being a it’s a build to sell. If it’s a build to rent, then that’s another story, then you’re still marketing, getting that marketing ready for getting tenants in. If it’s marketing to sale, you’re getting that that what the landscape looks like in order to be able to sell this development that you put together. Once it’s there, then you’re you’re now putting it out to market and you’re getting it all done and and you pay off all of your investors and it’s a grand day and you’ve completed your first real estate development syndication from opening to closing. And that is the basic process. So let’s go over those key eight steps one more time, just so that they’re there. Number one, identify a suitable property create a business plan. Number two, assemble a team. Number three, find investors. Number four, arrange for financing. Number five, put together the syndication. Number six obtain necessary approvals. Number seven, manage the construction, and number eight marketing and sales of the underlying asset itself. My name is Tilden Moschetti. I hope you found that helpful and a little bit enlightening looking at the development process and syndication together from a high level about how it all comes together. If we can help you with your real estate syndication development or a real estate syndication or any kind of syndication or private equity fund, you’re putting together give us a call. We’d be happy to talk with you
If I had to boil down the syndication of a real estate development project in the eight steps, what would those eight steps be? Let’s go through them.
My name is Tilden Moschetti. I am a real estate syndication attorney with the Moschetti Syndication Law Group. I’m also a real estate syndicator and developer myself, I thought it would be interesting to break down to distill in to eight difference and an eight step model of what a real estate development syndication project would look like what they look like from a very high level. Now, each of these probably has another 50 different steps. But I thought it would give a unique view of, of what the landscape looks like. So that if you are looking to do a real estate, syndication development project yourself, it might give you an idea of whether or not it’s something that intrigues you, or it’s something that you want to run from, I think it probably will intrigue you enough that you’ll want to keep working on it. But who knows. So let’s go through what those eight steps would be. So number one, is find the suitable property and created business plan. Now, obviously, if you’re going to develop something, you gotta have something to develop on. And you got to know kind of what you’re developing, right. So for the the piece on the business plan, I like to rely on the fit, of course, the founder investment theory, what it is actually, that you’re going to be building should also have a compelling vision behind it, a reason for why an investor would want to invest into this, if you were going to invest in this completely blocked thing that nobody would be very interested at all, you’re gonna have a really hard time finding an investor who’s going to help you out do that. If, however, you’re building this fancy resort, or you’re this beautiful luxury apartments with a with fountains and a lake or if you’re building, you know, the retail center that features some some new novel technology or something like that, that’s compelling, that’s got a story to it, and people investors are going to want to invest. And then you obviously need to find that property where you can do that. And then you need to make sure all the numbers line up. So the business plan needs to be complete with exactly how you’re going to do it. In terms of costs, you got to have pretty early on what those costs roughly are going to look like what the hearts cost side the soft costs. So what that looks like, that way you can start building in a story for your investors. That’s not just an emotional compelling story, but also has a rational, this is what we’re going to do component to it. Number two is start assembling your team, you can not do development alone, you’re going to be out there swinging a hammer yourself, I don’t think so, if development is a big team effort. So you’ve got to start putting those team together, this team is also going to be important for your investors to know who they are, because you’re using their resumes in addition to yours as reasons for them to invest, the more great a people that you’ve got, the more interested in investors going to be to be involved with. So that is also a major part of it as well. It’s great to give, give a helping hand to the people who, who you know, is does great work, but they don’t have a resume to speak for itself. That’s great, but you gotta have some heavy hitters in there as well. And mostly though, you need to make sure that it’s competent, that it’s a team that have players that absolutely can deliver, you’ve got investors money here, you’ve got to deliver for them. Number three, now, you got to find investors, you should have been looking all along, you should always be looking for investors every day of the week, every week of the year, you should be looking for investors growing your investor network. But this is the step now where you’re really finding investors and starting to let them know that you’ve got this project coming along and are they interested, you got to get those soft commits, you got to make sure that the business plan can go forward and then their money is part of it. Step number four is arrange for financing. So you’re going to most likely be using not only investor money and you’re not going to be paying all cash. Most likely most developers use US bank loans or hard money loans or some sort of other form of money in order To complete the project, so you need to start building those relationships with those financers. Whether they’re hard money lenders, or traditional bank lenders, wherever it’s coming from start building those relationships, so that you can get that financing in place, start building that model of what it will look like, from their point of view, how, what’s that interest rate? What are the terms? What is that going to look like? Number five, my favorite piece is putting the syndication together. So that piece of it, this step really is putting those necessary documents together, getting that private placement memorandum done, the operating agreement for your entity, the subscription agreement for your investors, getting it ready for filing with the SEC, as soon as you make a sale of the investment to a investor. Getting all those pieces together, this is an exciting time, because now you’ve got really something to show for. Not only that, not only is it the legal documents, but putting the marketing documents together. And once those are done, it’s getting investors in. So this is all part of that still putting that syndication together. It’s not just the framework of the documents and the marketing material, but it’s also getting the commence from your investors getting them to sign getting that pool of money. Once that money’s there, then you can go on to Step six. And Step Six takes place at a lot of different points. This is just getting those necessary approvals. Development takes approvals from everybody, as you probably know. And so you need to be doing that all along the way so that your project doesn’t stall just because the fire marshal hasn’t signed off on your deal. And it’s now waiting for two years. That’s not a good situation. Number seven, now you see it coming together. Now you’re managing the construction, you can watch it going up in front of your eyes. And it’s a magical and it’s all happening. This is another very exciting part of the development project. Because here it is, all the meanwhile you’re communicating with your investors, and you’re getting them excited. Why are you getting them excited, because you want them to invest in your next development project. So the more excited they are, the more they feel like they’re connected to the project better. Step number eight, marketing and sales, and I’m talking about marketing and sales for the future sale of the project. Now I’m assuming in this video that it’s just being a it’s a build to sell. If it’s a build to rent, then that’s another story, then you’re still marketing, getting that marketing ready for getting tenants in. If it’s marketing to sale, you’re getting that that what the landscape looks like in order to be able to sell this development that you put together. Once it’s there, then you’re you’re now putting it out to market and you’re getting it all done and and you pay off all of your investors and it’s a grand day and you’ve completed your first real estate development syndication from opening to closing. And that is the basic process. So let’s go over those key eight steps one more time, just so that they’re there. Number one, identify a suitable property create a business plan. Number two, assemble a team. Number three, find investors. Number four, arrange for financing. Number five, put together the syndication. Number six obtain necessary approvals. Number seven, manage the construction, and number eight marketing and sales of the underlying asset itself. My name is Tilden Moschetti. I hope you found that helpful and a little bit enlightening looking at the development process and syndication together from a high level about how it all comes together. If we can help you with your real estate syndication development or a real estate syndication or any kind of syndication or private equity fund, you’re putting together give us a call. We’d be happy to talk with you
Newer Episodes
Episode 69 – What Happens When an Investor Wants to Exit Early in Your Reg D Syndication Or Fund?
Episode 66 – How to Start a Real Estate Fund: A Step-by-Step Guide Using Reg D, 506b, and 506c
Episode 65 – Mastering Financial Analysis: A Key Skill for Reg D Syndicators and Fund Managers
Episode 64 – Raising Money From Friends And Family: Unlocking the Legalities of Raising Funds
Episode 63 – Are You Creating a Security? The Howey Test Knows: A Look At SEC vs. Howey
Episode 62 – Deconstructing a Reg D Real Estate Syndication Deal A-to-Z: Part 2
Episode 61 – Regulation D Waterfalls 101: Understanding Investment Distribution
Episode 60 – Choosing Between Regulation D Rule 506b and 506c for Your Syndication
Episode 59 – Deconstructing a Reg D Real Estate Syndication Deal A-to-Z: Part 1
Episode 58 – 10 Essential Tips to Secure Investment from Family Offices for Your Reg D Offering
Episode 57 – The ‘Syndication LLC’ Disaster: Consequences of Bad Advice
Episode 56 – What Is Equity Dilution In A Regulation D Syndication Or Fund Offering?
Episode 54 – Demystifying Open-Ended and Closed-Ended Funds In Reg D Private Equity
Episode 53 – An Innovative Example Of A Syndication Investment Strategy: F.I.T. In Action
Episode 51 – Cash Flow vs. Appreciation: Understanding Reg D Syndication Investor Types
Previous Episodes
Episode 45 – How Long Does It Take to Raise Money for a Reg D Syndication?
Episode 44 – How to Ensure Your Reg D Syndication Offering is Marketable and Legal
Episode 43 – 5 Mistakes Rookie Regulation D Syndicators Make
Episode 41 – How Capital Accounts Work in Syndications
Episode 40 – Why You Need a Private Placement Memorandum (PPM)
Episode 38 – Strategies for Managing Multiple Reg D Offerings: A Guide to Fundraising
Episode 37 – Understanding Real Estate Syndication Through a Practical Example
Episode 36 – The Art of Getting Investors’ Commitment: A Six-Step Guide
Episode 35 – Unlocking The Secrets To Establishing A Pre-Existing Relationship for Reg D Rule 506b
Episode 34 – Unveiling The Essential Fiduciary Duties For Syndications & Funds
Episode 33 – Navigating Securities Laws And Social Media: A Guide For Syndicators
Episode 32 – Assembling Your Real Estate Syndication Team: Who’s In?
Episode 31 – Understanding Waterfalls in Real Estate Syndication
Episode 30 – Choosing the Right SEC Exemption for Your Investment: Alphabet Soup
Episode 29 – Understanding Reg A, Reg CF, and Reg D in Syndication: The Alphabet Soup Explained
Episode 28 – LLC vs. LP vs. Corporation: Which to Choose for Syndications?
Episode 27 – Can You Get a Bank Loan?: Leveraging Traditional Financing in Syndication
Episode 26 – Securities Licenses and Real Estate Licenses for Reg D Syndications
Episode 25 – Unlocking the World: US Syndications Open to Non-US Investors
Episode 24 – Syndicators’ Guide to Self-Directed IRAs: Maximizing Capital Sources
Episode 23 – GP and LP: Exploring Syndication’s Key Players
Episode 22 – Syndication Fallout: What Happens When Losses Happen?
Episode 21 – Business Funding Unleashed: Embracing the Opportunities of Regulation D
Episode 20 – Behind the ‘Bad Actor’ Rule: Rule 506d Demystified
Episode 19 – The Myth Of The Friends And Family Securities Exemption For Syndications
Episode 18 – Demystifying Form D Filings with the SEC: In-Depth Walkthrough and Tips
Episode 17 – Can An LLC Invest Into A Regulation D Rule 506b Or 506c Syndication Offering?
Episode 15 – How Does Regulation D Rule 506c Work For Syndication?
Episode 14 – Syndication Attorney Webinar – ‘Ask Me Anything’
Episode 12 – ‘Can I do both a Regulation D 506b and Reg D 506c in one LLC?’
Episode 11 – ‘Can I do a 1031 exchange in a Regulation D syndication?’
Episode 10 – Regulation D Limitations on Resale: What You & Your Investors Should Know
Episode 9 – How does Regulation D Rule 506b work for syndication?
Episode 8 – How do I pay people to market my Regulation D syndication?
Episode 7 – What information must be disclosed in a syndication private placement memorandum?
Episode 6 – What are ‘Blue Sky’ laws when it comes to syndication?
Episode 5 – How can you structure sponsor fees for a Regulation D Rule 506 syndication?
Episode 3 – Should I do a Regulation D 506(b) syndication or a 506(c) syndication?
Episode 2 – How do I market my Regulation D Rule 506 offering?
Episode 1 – How Should I Structure My Regulation D Syndication?
