My question is how do I legally set up a Syndication with I believe it is the SEC as a 506 (c)?

There is no requirement from the SEC as long as you’re legally exempt from securities laws.

@Assaf BenjaminYou may also need to register with the state or the SEC as an investment adviser if you will be advising on these deals and/or will receive a commission.

There are FEDERAL securities regulations (think SEC) as well as STATE regulations & laws.  

Raising capital for a sponsor or syndicator can get you into trouble with the SEC as getting paid for raising funds is a no no.

SEC, (as in mine government) does not want a person one year out of college with student loans on their back, a job at $50000 and no savings maximizing their credit cards to invest.

I am looking to purchase an investment property ($500k purchase price).I have 5 private lenders to provide $100k each.Each will have a separate trust deed - in 1st, 2nd, 3rd, 4th, 5th position.Since I am pooling investor money into one investment, do I need to file this with the SEC as a security?

Security and Exchange Commission (SEC).  As

Syndicating is basically a private securities offering which is governed by the SEC. A

To the extent FICA or SECA is involved, I'm already over the cap via w2 work so the bulk of it is not relevant and with careful planning, there should not be much actual net income.Now the computer is an active expense, not a passive expense, and can be written off against substantial w2 money.