real estate syndicates real estate brokers/agents syndicators - - PowerPoint PPT Presentation

real estate syndicates

real estate brokers/agents syndicators attorneys Investors property managers lenders

• bjective
• provide knowledge to use syndications in

group investments to solve any or all of the following issues:

• lack of experience
• lack of capital
• can not find investment grade real estate
• can not operate/manage multi-million $$$ real

estate

where is the $$$

• 3% of $500,000
• 3% of $5,000,000
• 3% of $50,000,000
• (subject to negotiations)

securities law

35-or-less interrelationship rule

• the investors do not number more than 35 (spouses counting

as one investor);

• all investors have a meaningful, pre-existing business or

personal relationship with the syndicator;

• the investors will not resell or distribute the interests they

acquire;

• the solicitation of investors does not involved public

advertising; and

• the syndicator files a notice of the transactions falling under

the exemption with the California Commissioner of

• Corporations. [Calif. Corporations Code 25102]

good reads

• ne-on-one

q&a

tito velasco security apartment manager 714-231-2830

plan of action

• chronological activities in syndication
• … identify federal and state guidelines
• … investment circular
• … solicit investors
• … operating agreement

typical activities in forming syndications via LLC (firsttuesday.us)

1. find and analyze the property 2. contract to purchase with contingencies 3.

• pen escrow (name of syndicator, disclose intent to

syndicate) 4. complete due diligence 5. apply for new financing 6. review plans to form and operate legal entity LLC 7. prepare investment circular IC 8. deliver IC to prospective investors 9. secure subscription from each investors 10. hire property manager 11. finalize financing arrangements 12. file LLC Articles of Organization 13. assign purchasing rights from syndicator to LLC 14. close escrow and take possession of property 15. send closing docs to each member of LLC 16.

• perate the LLC

17.

• perate the property

18. resell the property (at end of project) 15% discount code 6067 firsttuesday.us

tito velasco security apartment manager 714-231-2830

What’s next?

• Preparation … Read and study syndications now
• Trigger … when you come across a property with

$$$ potential … but don’t know how or what to do

• Action … Form your team --- do not do it all by
• yourself. Big $$$ transactions are team based.