Syndication questions, where to start.

[Tyler Bobo]

I've been listening and reading about syndicating and don't know really what the first step should be. One article here on BP says they're usually structured LLC's or LP's. I've set up quick LLC's in online in my state no problem so where is the line between a normal LLC and Syndication? I'm guessing it's when there's money pooled from passive investors? So do I just need a limited partnership agreement written up by a competent attorney who understands syndicating or what should my first step on that front be? I want to make sure I have my paperwork in order before I go get myself in trouble:)

Side note so people know how to respond, I am not new to investing, or raising money partners one per deal, just looking to step it up a notch so I can get into a bigger playground.

Thank you!

[Chris Levarek]

@Tyler Bobo Recommend reading Joe Fairless book "The Best Ever Apartment Syndication Book" as this is the manual so to speak and easy to understand. There are plenty of blog posts on the subject as well such as, What is Apartment Syndication?, Syndication Worth the Trouble, Apartment Syndication Secrets Unlocked, etc. Search in BP for Syndication and read all the blogs on the subject. Form a list of questions.

 Then, spend the hourly rate with a Securities Attorney, just search on bp for some recommendations, and ask all your questions or for an overview how you might set one up. 

For steps it goes something like this, in brief, for sponsoring a deal:

1. Build Brand & Credibility
2. Select Market
3. Build Team and Partner relationships
4. Build Investor List
5. Find Deals (started at partner relationships step)
6. Submit LOIs and Acquire Deal under Contract
7. Entity(REG D LLC) creation and documentation with Securities Attorney (started at partner relationships step)
   
8. Secure Financing from Lenders (started at partner relationships step)
9. Present Deal to Investors
   Raise Capital from Investor List
10. Close on Deal
11. Renovate & stabilize
12. Manage Property/Communicate status to investors
13. Share Profits & Losses until Sale

Additionally, It also could be beneficial to invest passively on a Syndication first to see the flow and build network relationships. Hope that helps!