Syndication Law & The Private Placement Memorandum Attorney

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 this, and it’s a mistake. Bring that decision-making process to the investor at exactly the right time, when they’re...

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 to put it into your next deal! Visit the web version here: https://www.moschettilaw.com/launching-real-estate-syndicatio...

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?  Visit the web version here: https://www.moschettilaw.com/launching-real-estate-syndications-distributions-of-return...

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 that property management is working as effectively as possible...

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.  Visit the web version here: https://www.moschettilaw.com/launching-real-estate-syndications-asset-management/ Welcome to Launching Real Estate Syndicatio...

“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. Visit the web version here: https://www.moschettilaw.com/launching-real-estate-syndications-investor-communications/ Welcome to...

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? Visit the web version here: https://www.moschettilaw.com/launching-real-estate-syndications-finishi...

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 it can be ready to close? Visit the web version here: https...

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 a 506b, really just means the pitch between you and the contacts that you already have – those pre-...

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.  Visit the web version here: https://www.moschettilaw.com/launching-real-estate-syndications-operating-and-subscription-agreements-for-syndications/ Welcome to Launching Real Estate 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... Visit the web version here: https://www.moschettilaw.com/launching-real-estate-syndicat...

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… Visit the web version here: https://www.moschettilaw.com/launching-real-estate-syndications-making-sense-of-the-sec-alphabet-soup/ Welcome to Launching Real Estate S...

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 – they’re not afraid to go into the details abou...

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 investors. We’re going to go through the different ways that you get paid, whether that’s through fees, or broker...

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 about or sell them. Properties are the raw materials that syndicators work with. So how do we find deals? Here’s a four step system so you’re not left to the winds of chance. Visit the web version here: https://www.moschettilaw.com/launching-r...

The good news is that finding investors doesn’t need to be that challenging. In fact, you are doing many of the things to find investors already. All you need is to systematize those and then follow the process, which is actually quite simple. There’s only a few things that you need to do. And you probably know what those things are already, and are doing a lot of them.  Visit the web version here...

There are two different kinds of decisions that we need to make in order to protect yourself from the very beginning from deals going sideways, or making a mistake by choosing the wrong kinds of investors... Visit the web version here: https://www.moschettilaw.com/launching-real-estate-syndications-structuring-syndication-entities-to-protect-yourself/ Welcome to Launching Real Estate Syndications...

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. Visit the web version here: https://www.moschettilaw.com/launching-real-estate-syndications-founders-investment-theory/ Welcome to Launching Real Estate Syndicatio...

Welcome to Launching Real Estate Syndications - a 23 part series on getting started in syndicating real estate using Regulation D Rules 506b and 506c. This video is brought to you by Moschetti Syndication Law Group (https://www.moschettilaw.com), a syndication law firm. This first podcast in our series, welcomes you to the whole system of real estate syndication.  Visit the web version here: https...

Tilden Moschetti, an attorney specializing in Reg D Rule 506b and 506c offerings, addresses the question of how syndicators can inform friends, family, and contacts about an investment opportunity without violating SEC rules. Regulation D Rule 506b, prohibits the advertisement of the offering as a general solicitation or general advertisement. Thus, while friends and family can be informed, it sho...

Tilden Moschetti, an attorney for the Moschetti Syndication Law Group, discusses the question of whether a syndicator can do both a Rule 506b offering (to include non-accredited investors) and a Rule 506c offering (for advertising purposes) at the same time. The answer is complex and depends on the specifics of the strategies used. In general, Rule 506b allows up to 35 non-accredited investors in...

Tilden Moschetti, of the Moschetti Syndication Law Group, addresses two questions related to 1031 Exchanges and syndication. *Can investors doing a 1031 exchange be incorporated into a syndication?* Yes, this is possible but complex. Investors could enter the syndication as a tenant in common as part of their 1031 exchange. However, each tenant in common can vote on property decisions and may not...

Tilden Moschetti, a syndication attorney with the Moschetti Law Group, specializes in creating private placement memorandums under Regulation D Rule 506b and Rule 506c for syndicators and businesses trying to raise capital. In this summary, he addresses the common question of limitations on resale within these documents. A private placement memorandum outlines a private offering that is exempted f...

Tilden Moschetti, a syndication attorney with Moschetti Law Group, specializes in Regulation D filings (506b and 506c). His work primarily involves producing private placement memorandums, operating agreements, subscription agreements, and investor questionnaires. He ensures that syndicators are raising capital in a legal and compliant manner. In this communication, he dives deep into Rule 506b, a...

Tilden Moschetti, founder of Moschetti Law Group, discusses the issue of compensating others for marketing syndications. He advises against paying finder fees due to the potentially severe consequences and the inherent risks involved. The only permissible payments, according to Moschetti, are to licensed broker-dealers who are legally able to raise funds for your syndication. He suggests that an a...