Syndication process paperwork

[Vera S.]

Hello,

I recently was in a webinar about syndications and they emphasized how important it is to only wire funds in a syndication deal after the countersigned legal paperwork has been returned to you. They specifically said to never fund without this step complete first. I'm in the process of investing into a deal now that said they won't counter sign until 2 days after the funds get transferred. What is the usual process? Is it in fact important to get countersigned papers before funding?

Thanks!

[Bryan Hancock]

Tell them to pound sand.  You should not wire any money into the project until you receive fully-executed and countersigned paperwork.  The subscription is generally a joinder for the other agreements so they should send this countersigned along with anything else your attorney tells you that you need for things to be legally binding before you wire funds.  Things need to be done in the proper order.