How do we set up a Syndication?

2 Replies

How do we properly set up a proper syndication to acquire rental units? 


The most I know which is not much but through getting my license. I think it requires SEC registration. It is not your typical business entity. CAUTION IMO. I am not an attorney.

It depends on what type of syndication you're talking about (public or private), what your purpose and goals are, and what your exit strategy is.  Since you haven't provided insight into these prerequisites, my answer may not be applicable to your situation.

I have a private syndication which my attorney set up for me, after I defined its purpose, goals, and exit strategy. I am one investor of several (among them, my family trust, my ERISA investment LLC, and private family investors), as well as the managing member.

You set up such syndication entities by clearly establishing their purpose and goals, the benefits to investors, the exit strategy, the management strategy, and the processes for handling disputes, change in membership due to estate or bankruptcy of a member, the process for winding-down a series, and the overall exit strategy.  Once you've done that, you confer with an attorney experienced in real estate syndication, and retain him.

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