Structuring a Syndication

[Rob Glenn]

Good day investors. I'm interested in syndicated a deal and wanted to details on properly and legally structuring one. It's a 16 unit apartment. I will be seeking legal advice as well from a local attorney. I really just want to know the break down. My investors will want to be Equity partners. I've heard advice like, the LLC is Broken up into shares and each investor has a share. Really I need to know someone's experience of building a investment group and managing that group so people get the return expected. I will have about 6+ members in the investment group.

[Charles Carillo]

@Rob Glenn

You need to speak to a SEC attorney that is experienced with real estate syndications. They will explain setting up the LLCs for the general partners, limited partners and for the property. I would not form a syndication if you were raising less than $500k since the costs are over $10k and it can become complicated. Typically, syndications are returning investors 8%-10% cash on cash with a 15%+ IRR. You should make sure you can hit these numbers or not do the deal.