I am about to invest in my first syndication. This is with a gentleman who owns an LLC. The investment is for a four unit new development. He will be placing me on the note and deed. What is the usual way of going about this process to ensure everything is done legit? Will I write a check directly to the LLC? Will I have any dealings with the title company? Anything I should ensure?
Thanks for all your input!
You should hire a local qualified/specialized real estate attorney to represent your interests in the transaction and discuss the specifics of your deal.
@Justin R. I hate to post a response that merely states to talk to an attorney, but in your situation, I think it would be a very good idea to talk to an attorney before you do anything.
Not sure what type of agreement you may have with this gentleman but some questions that come to mind are:
what is your ownership percentage in this project and is that reflected in any contract?
Are you merely funding the project? if so, what are the duties and responsibilities of the other party?
How will you split any profits/cash flow after completion?
There are so many more items that need to be addressed (all in writing and signed by both parties) before any work gets underway. If you have a lot of money on the line, be sure to have your own attorney review any agreement.
I would want everything in writing so that everything is clear. I have met many people that put themselves in situations because they thought and then lost out. But of course an attorney by your side would sure up things .
Thank you all for your help and guidance. I have asked my attorney to look over the contract. Thank you!