What are the costs to Syndicate

14 Replies

If it’s a Reg D, budget $10,000.  There are many who will do it for $7,500.00, just get references.  Never seen one for less than $5,000.00. If its a REG A (Public Offering) 5X it.

$10,000 would cover everything, PPM, Investor Qualificstion Survey, etc.  Make sure Attorney has reputation for doing docs that are simple and easily understood by your Investors.  Only thing extra would be filing fees with the states you intend to register.  Again, you can get it done for less than $10,000, but probably not much less than $7,500 for a Reg D.

I can't speak for anyone else, but we charge between 10k (for less than $1million) and 17,500 (10 million). That includes everything except filing fees. I very much encourage you to shop around. 

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Other legal fees though will be title and closing fees, mortgage fees, inspection costs, surveys, phase 1 report, etc. This will cost around 3% maybe more depending on the type of loan you will do and if you use a mortgage broker (additional 1%).

Originally posted by @Robert Carraway :

@Brian Adams Thanks, Brian.  Any perspective on the cost of the Blue Sky filings?

Blue Sky depends on the state.  Each state has their own fee, plus your counsel will have a fee for filing with each state.  To be conservative, plan for $1K to the attorney for each state plus $500 to $2K per state for the state fees.  If all of your investors are in one state, it's like $1,500 to $3,000.  If you have investors from ten states you could 10X that.  Since most of my syndications are fairly large, with investors from multiple states, I typically budget $20K for Blue Sky.  For a small deal with a group of local folks use $3K and then hope to be favorably surprised.

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