Syndication and structuring operating agreement

[Sachin Amin]

Hello BG experts,

looking for some guidance on how to structure a syndication model. we have spent lot of time securing 5 investors for a deal we are working on. In past mostly we had family and friends who invested with us to get % return. We are at a point where we are scaling our operations first time and have external investors who are willing to put in $$. I did lot of research on PPM and Operating agreements for syndication. Any referrals who can help structure our deals. I know there are syndication attorneys but they charge anywhere from 5k-10k , is that worth investing in or can we just come up with our own agreement with terms and conditions ?

Any guidance on this would help us a lot making the right decision and taking the right path.

Cheers!!

Sachin

[Chris Seveney]

Quote from @Sachin Amin:

Hello BG experts,

looking for some guidance on how to structure a syndication model. we have spent lot of time securing 5 investors for a deal we are working on. In past mostly we had family and friends who invested with us to get % return. We are at a point where we are scaling our operations first time and have external investors who are willing to put in $$. I did lot of research on PPM and Operating agreements for syndication. Any referrals who can help structure our deals. I know there are syndication attorneys but they charge anywhere from 5k-10k , is that worth investing in or can we just come up with our own agreement with terms and conditions ?

Any guidance on this would help us a lot making the right decision and taking the right path.

Cheers!!

Sachin

 Trying to come up with a PPM and operating agreement on your own vs. an attorney is like trying to fly a plane by yourself with no experience. Even if you copied someone elses, its just a really bad idea. If you want to be a real company/syndication then do it the correct way. Yes you will need an attorney to draft these documents, you will need to file the Form D with the SEC etc. Expect to pay closer to $10k and even more depending on variables such as do you know your terms. Your attorney is there to create the documents not tell you how much pref to give or how to split the money. So make sure you understand the structure you want first.