How to structure syndication deals

Question

I’m looking for recommendations on books/speakers/educational resources on structuring syndication deals, especially around how to appropriately structure deals

Oleg Shalumov · Answer

@Adam Philpot I would recommend talking to SEC attorney on structuring a deal but it sounds like you are just looking for info at this point.

One of the best book for you would be “Best Ever Apartment Syndication Book” by Joe Fairless & Theo Hicks

Alina Trigub · Answer

@Adam Philpot

As @Oleg Shalumov mentioned Joe Fearless and @Theo Hicks wrote a book on syndications. There's another one by a securities attorney, Gene Trowbridge, "it's a whole new business". After you read the books to get a general idea, you can speak with securities attorneys. A number of them is here on BP. If you need recommendations, feel free to reach out.

That being said, if you've never done a syndication, I recommend partnering up with someone experienced to do it the first time around.

Scott Meyers · Answer

Hey Adam!

I only invest in Self Storage but I do hold a Private Money & Syndication Summit once per year.  The principles taught apply to Self Storage, as well as just about most other investing syndicates - at least the what, why, & how to go about about setting them up.

Jillian Sidoti from Crowdfunding Lawyers (partners with Gene Trowbridge whom @Alina Trigub recommended) speaks at these Summits about all of the above on the in's & out's of setting up a Syndication. If you don't get the chance to either attend live (next one later this year) or want to get the recordings (last one was October 2018 in Henderson, NV) I highly recommend you reach out to Jillian regardless, for if & when you decide to move forward in setting up a PPM.

Good luck!

Theo Hicks · Answer

Thanks for the shout out @Alina Trigub. And I would second her advice. If you've never done a multifamily deal before (or if you've never done a deal in general), syndicating a deal by yourself if unrealistic. Find a partner with experience or do some deals on your own to build up a track record.

John Casmon · Answer

@Adam Philpot Definitely check out the books that @Alina Trigub recommended. In addition, there are a few main components of the structure to consider: exemption status (506b vs 506c), equity split, preferred return, fees and waterfall hurdles. My advice: keep it simple for investors.

How to structure syndication deals

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