Setting up a Syndication

[Danté Belmonte]

21 years old and I have multiple investment properties. Now I am stepping it up a notch to create Syndications. My plan is to buy a crap shoot multi-family cash and BRRRR it thus returning all of my investors their money after the Cash Out Refi resulting in a brand spanking new investment property with almost no money down. I am able to raise over $100k which is plenty to buy a multi-family in distress and have enough to renovate the entire home.

My question is how do I legally set up a Syndication with I believe it is the SEC as a 506 (c)? I have heard these words get thrown around on podcasts, in articles and books but no one really lays out the steps to start a Syndication properly or maybe I haven't found the proper education on it. 

Anyone that knows the process or somewhere the lays out the blueprints to start a Syndication, please let me know!

Thank you!

[Paul Moore]

Hi Dante,

I agree that if you need to do a syndication, you will need to find a syndication attorney. There are many good ones. Jillian Sidoti spoke at the recent BPCon 2019 in Nashville.  Her partner, Gene Trowbridge, wrote a book on syndication. 

Though I am not an attorney, I agree with Andy. I have heard that for a small raise like this, it is better to form an LLC and not do a full syndication.

And I agree with Taylor that you should avoid the Vegas language when courting investors. Good luck!