Tilden Moschetti: If you're
putting together a real estate

syndication or any kind of
syndication or fund, one

question you may have is can you
get a bank loan on that property

or whatever those assets are, at
the same time as raising money

through equity from your
investors. We're gonna go

through that my name is Tilden
Moschetti. I am an attorney with

the Moschetti syndication Law
Group. We specialize in

Regulation D Rule 506b and 506c
syndications and helping

syndicators like yourself, put
together those offerings.

Can you take traditional
financing, while you're also

putting together a syndication?
The answer to that question is

yes, you can. So it's part of
your analysis of certainly the

bank or whoever that lender is,
is going to get paid back first.

Right? So first and foremost,
they always get their money back

first, all of your investors
need to come second to that. So

they need to know that you're
going to be taking that

financing. So first off, you
need to disclose it, make sure

that they know now in order to
get that financing, they're

gonna the banks typically are
going to ask for a guarantor.

Now, if it's a non recourse
loan, so a loan where they can

go after the borrower for
anything like a, you know, a

fee, and as part of a
foreclosure, then it they still

are going to need a guarantor
and what they call Bad Boy carve

outs or carve outs, and those
are saying that in the case of

fraud, of course, they can still
go after that person. So they

still need a guarantor for that
limited scenario. For the for a

traditional loan, where there is
a recourse loan, which currently

is the vast majority of the
loans are recourse loans, they

will still require a guarantor
that guarantor is typically you

the sponsor, or a could be some
other person that somehow

affiliated with the investment
vehicle itself. Sometimes what

syndicators will do if they
don't have the financials, to be

able to qualify as the guarantor
is, they will pay for the

guarantee, they will pay for a
guarantor from one of the

investors. And they do this by
offering a finance fee. So they

charge of finance fee of maybe
1%, to the entire investment,

and that money gets sent over to
the gets paid to the guarantor,

one of the investors so that
they get compensated for the

risk level that they're being
taken that they're taking on.

The other thing that banks will
oftentimes require is they want

to know that there is no one in
this part of the syndication

that owns more than 20%.
Typically, it's 20% by have

occasionally heard about it at
10%. Most of the time, it's 20%

is what the underwriting
requires. If anybody owns more

than that, then they need to
sign on the loan itself.

Typically, we don't disclose
names to the banks of all of

your investors. And so if
somebody is going to be own more

than 20%, they need to know that
they probably will have to have

their name disclosed, and they
will also have to sign on the

loan. So the In short, the quick
answer is yes, you can use

traditional financing, hard
money financing all those

different vehicles in order to
raise money, raise additional

capital for the purchase of
assets for your investment

vehicle itself. My name is
Tilden Moschetti. I am an

attorney with the Moschetti
syndication Law Group. We

specialize in Regulation D Rule
506b and 506c offerings, helping

put those offerings together for
real estate syndications

businesses, anybody who needs
outside investment in order to

raise capital from outside
investors to make those asset

acquisitions possible