Paperwork needed for Syndication?

[Michael Fernandez]

Asking for a friend... I have someone who has been funding deals with their own equity for years and want to transition into using Syndication. What are the necessary paperwork/legal work needed? In order to use Syndication, do you have to hire a Securities Attorney to draft a PPM or is there a way to only use a Joint Venture Term Sheet with investors since it is a deal by deal approach? Anything helps!

[Greg Dickerson]

 If you are pooling multiple investors in a deal It’s always a good idea to consult with a securities attorney to see what they recommend. A PPM is not very expensive compared to the cost of a potential lawsuit  or securities violations. 

 If you are doing a true joint venture where everybody has ownership that would be a different situation and may not require a PPM but you would still need to consult with an attorney to make sure you have the proper joint venture agreements and paperwork in place to protect everybody.