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Ricardo Yey Lopez
Pro Member
  • Rental Property Investor
  • Tennessee
0
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8
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Help with syndication

Ricardo Yey Lopez
Pro Member
  • Rental Property Investor
  • Tennessee
Posted

I have investors that want to put their money in my deals but I don’t know anything about how to syndicate or partnering. Specially, as it relates to taxes.  Does the real estate attorney take care of all the paper work ? 
any help will be appreciated !

  • Ricardo Yey Lopez
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    Ellis San Jose
    Pro Member
    • Rental Property Investor
    • Westlake Village, CA
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    Ellis San Jose
    Pro Member
    • Rental Property Investor
    • Westlake Village, CA
    Replied

    You will need to determine if this falls under SEC regulations depending on the amount of capital, nature, and structure of your investment. A real estate attorney specializing in Securities/ Joint Ventures would be your best advisor on how to proceed. Then have it reviewed by CPA or Tax attorney for tax impact questions

  • Ellis San Jose
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    Chris Seveney
    Pro Member
    #3 All Forums Contributor
    • Investor
    • Virginia
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    Chris Seveney
    Pro Member
    #3 All Forums Contributor
    • Investor
    • Virginia
    Replied
    Quote from @Ricardo Yey Lopez:

    I have investors that want to put their money in my deals but I don’t know anything about how to syndicate or partnering. Specially, as it relates to taxes.  Does the real estate attorney take care of all the paper work ? 
    any help will be appreciated !


    You need both an attorney and a CPA to review the offering. Typically the entity is setup as a LLC and investors are members of the LLC and receive a K-1 at the end of the year. Again "typical" but can be done many ways.

    If you are raising money from more than one investor then you should do some sort of SEC exemption like a regulation D 506b or C. Plenty of info to google on the web. Assume that it will cost you around $10k to get the docs setup and $3-$5k per year for taxes. 

  • Chris Seveney
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