Startup Syndication Costs

[Taylor Witt]

I've been doing a lot of education on putting together a syndication but there are a couple items I haven't found answers for. Everyone on here advises having a securities attorney put together the appropriate business entity and paperwork, so my question is two fold. 1. What are the typical set-up costs on getting everything put together before I can actually sponsor a deal? 2. Based on other people's figures and experience, is there a minimum multifamily deal amount where it actually doesn't make sense to do the deal? For example does it pay to put together a deal at 1 million, 2 million, etc?

[Jeff Wallenius]

@Taylor Witt you can easily spend around $20K to setup your syndicate, and I would echo what you said above, make sure you have a knowledgeable securities lawyer set this up for you. There is no "ah gee I didn't know" when dealing with securities so you need to ensure your covered and your investors are also covered. 

Our syndications are currently investing in bulk single family, with multifamily to follow. Your question on a minimum is pretty broad as it all depends on the structure, your goals, volume, operating costs, etc. Sorry I can't nail down a dollar figure for you and best of luck with your setup!