Not sure how to check a syndication for legitimacy
How do I know if a syndication is legit or a scam? I haven't done one before and met someone through a forum similar to Bigger Pockets that seems legit but at the same time a little too good to be true. I'm not sure how to go about vetting the project other than google searching everything about the people involved and the company, and so far no red flags. Any advice would be great!
Most Popular Reply
@Evan DiLeonardi
You have to do a ton of due diligence on them. First ask them for copies of the subscription agreement and private placement memorandum and company operating agreement
Then go to:
https://www.sec.gov/edgar/search/
If they are a regulation D 506b or 506c then they are required to file a form D with the SEC
If there is no form D filing then stop and go on to the next deal- it is not legit.
If they filed a form D then move on to next phase - doesn’t mean they have a legit offering just means atleast filed proper paperwork .
I have written blog posts on this topic that you can search BP on to continue to your DD
- Chris Seveney
