time it takes for a PPM

[Jessie Eagen]

How many hours did it take you to draft your last multi family PPM? I think we have just over 40 hours in our last one not including attorney review and the 3rd party vendors time who we use to put it all together. 

[Brian Burke]

Zero hours to draft it because we real estate syndicators don't write PPMs, our lawyers do.  After our lawyer writes it we have to review it, however.  That can take anywhere from several minutes to several hours.

If it is a first PPM, it will take hours because you should read every word, and make suggestions for changes.

But once you've done a few, the review can take very little time if you have your lawyer provide you with a redline document which shows all of the changes from the last PPM you used.  Now instead of reading every word, you just need to read what changed, plus scan for what hasn't changed just to be sure that those provisions and disclosures still apply.

Raising money from investors is not a do-it-yourself project, so my advice is to not attempt to draft your own PPMs.  Leaving out a necessary risk factor or disclosure can have disastrous consequences if things go wrong.  It could land you in court or even in jail.  Don't take the chance.

Instead, spend your time drafting the marketing documents and leave the lawyering to the lawyers.  

Marketing documents will take hours.  I'd guess I spend 40 to 80 hours on mine, maybe more when you count input from everyone on the team and various stakeholders.  And that's beginning with a template and solid underwriting with all of the tables and charts already done during the acquisition underwriting.