Legal way to raising capital for someone else's syndications

[Mano Chidambaram]

Through the years, I have built a network of high-networth, accredited investors who are interested in diversifying into real estate. I have passively invested in several MF syndications & have done a ton of research but have not done a syndication of my own, yet. Something I might consider in the future.

In the meantime, I am trying to figure out the best way to help my network deploy capital

One option, I am considering is to start an investment group, where I partner with different syndicators, to help raise capital for their syndication by leveraging my network to raise the required capital. I am not looking at creating a "blind pool", but more specifically to partner with different syndicators in different niches & raise capital for their specific offerings & get compensated for raising that capital

Can this be legally done? If so, what is the right way to go about doing this? How would you structure the business?

Appreciate any input, especially from some of the SEC legal folks like @KimLisa Taylor, @Jillian Sidoti or @Amy Wan

Thanks in advance for any advice

[Jay Hinrichs]

I have seen this work and had someone invest with me this way.

they did their own PPM  with them as manager/sponsor .. business purpose of your PPM

is to scour the US to find other syndicated investments that you would invest your PPM funds into.

I have by referral and for FREE probably raised a few million for a few of the syndicators on this site that I personally like.. and when talking with them if I did want to be compensated I would need a series 7 license I think then the ability to sell away .. and maybe a RFP would be allowed to as well I have seen that.

Either way if the investments you put people into go well you might get an atta boy if they go bad in either scenario you are getting commish or its your PPM they will blame you LOL..  so picking the right sponosor is absolutely critical.. lots of newer players in the space doing their first to 3rd deal.

personally I like the guys that have been doing it since at least 2000 then I know they went through the downturn or meltdown depends on your perspective and are still here.