20 Steps to Real Estate Syndication

1-Research and find rental property in a particular neighborhood and choose one to purchase

2-Prepare a preliminary analysis of the investment. This would include its operating history, status of title, proximity to any environmental or natural hazards, the neighborhood, the local and national economies, and finally the physical condition of the property

3. Tie up the property and get control of it in your name with the ability to assign it to a successor entity (The new syndicate group Investment LLC entity) through a purchase contract or option

4.Open escrow with your name as the purchaser, not that of the entity! You’ll assign your purchase rights to the entity before you close

5- Conduct due diligence. Perform a Quality of earnings report as well as legal due diligence in terms of title

6- Apply for new debt or assume existing debt

7- Review your plans for forming and operating your ownership entity with you accountants and lawyers

8-Prepare the investment circular (PPM, Private Placement Memorandum) under either rule 506 (b) or 506 (c) or through a regulation A+ offering. You should have a subscription agreement, articles of organization and operating agreement for the LLC, pertinent exhibits and Addenda. The Syndicator (you) is named as the Manager of the LLC in these documents if you did not find someone to be Manager instead

9-Market the Investment Circular to potential investors to fund your purchase, through the LLC

10- Pool together the investors. Once you have approved the investor’s suitability you need to get their signatures on the Subscription Agreement and the Operating Agreement of the LLC. You’ll also want to deliver their funds to escrow for the close

11-When the LLC is completely funded, the Syndicator needs to complete the property purchase. If necessary, the Syndicator signs a loan documents for a new loan or the assumption of an existing one

12-The Syndicator then files the Articles of Organization with the state in which the LLC is formed and any formal registration documents if the property is in a different state

13- The Syndicator now assigns his right to purchase the property to the LLC in an amendment to escrow prior to the close. The property now vests in the name of the LLC and the Syndicator gets his ownership percentage in the LLC

14- The down payment and closing costs for the transaction are paid to the Seller from the LLC member’s contribution

15- Escrow closes and the LLC takes possession of the property

16- The Syndicator now sends copies of the closing documents to all of the members of the LLC, along with any other organizational documents that may not already be in their possession

17- The Syndicator now steps into the role of the partnership manager. The Syndicator oversees the property on behalf of the LLC, executing the business plan

18- Distribution of cashflow is delivered to all the investors on regular periodic periods. Also, regular partnership reporting and communications are sent to

investors

19- Meetings are held to inform and update investors on the status and progress of the investment property. At times, the investors may make major decisions, such as add or replace investors, refinance or sell the property

20- When it’s finally time to sell the property, the Syndicator manages that process including:

(i) Hiring a real estate broker or represents the LLC

himself to sell the property

(ii) Negotiating purchase offers and coordinating closing

proceedings

(iii) Providing disclosures and reports during the closing

(iv) Making final profit distributions to investors

(v) Winding down and terminating the investment group

partnership LLC

In monopoly (UK Version) it works out that Pentonville road, Angel of Islington & Uston, the light blue sites on the left give you 159% return and are the best in terms of arithmetical return but the dark green sites which are what people think that are better Oxford Street, Bronze Street, and Regent Street only give you 101% return so they are very bad. The next best sites are the orange ones which are Bow Street, Vine Street, and Marlborough Street. They give you 141% return but they are better than Pentonville Road, Uston & Angel of Islington because there is an increased incidence of landing on them.?You land on them more often and the reason for that is, there is a card in the chance that orders you to go to jail. And if you go to jail, you are past the blue sites and about to land on the orange ones. In addition to that, there is another card in chance, ordering you to advance to Pall Mall which does the same thing, it takes you past the blue sites and another one demanding to advance to Marylebone Station. There’s also another one demanding you to go back three spaces, which in one position will land you on Vine Street. So there’s an overwhelming case for having the orange sites. Now, most people do not know that.

Quote

"Life is movement and movement in my opinion is represented as a wheel. It may be a car wheel, bicycle wheel,?or even a semi-truck wheel. In the end, you choose the size, width,?and type of rubber. What’s even better, you also have a choice to fill it with more air than the recommended pressure (for some that’s un heard of), however, one thing is crystal clear; to live a full life and have choices you must be willing to transform into a wheel rather than being a spoke on that wheel."

Disclaimer: This material provided in this article should be used for informational purposes only and in no way should be relied upon for legal or financial advice. Also, note that such material is not updated regularly and some of the information may not, therefore, be current. Please be sure to consult your own financial advisor and lawyer when making decisions regarding your financial or legal management.