Putting together a real estate syndicate
I am looking to put together a syndicated real estate deal. After meeting my lawyer he suggest I talk to others to see how they have structured there deals.
Example: % of acquisitions fee, % mgmt fee, % they took as part of the deal, Did you put any of your own money in the deal if so how much?
Any help is much appreciated
Most Popular Reply
I typically put some money in (maybe 5-10%) because I've found it helps attract investors who like that you've got some money in it. One of the things you need to be careful of in "syndication" is that in many cases you actually fall under federal securities regulations (see Securities Act of 1933). Read the exemption clause found in Rule 505 of Regulation D of this act. If you don't follow this carefully, you could end up being sued by your investors.