How do you deal with
oversubscribed syndications or

undersubscribed syndications?
Can you do it? Is it possible?

What do I do? How do I
communicate it what what has to

happen in order to be compliant?
Fat is exactly what this video

is about.

My name is Tilden Moschetti. I
am a syndication attorney with

the Moschetti syndication Law
Group. Sometimes some of my

sponsors come to me with the
great problem of, hey, I've

raised $5 million, I've raised
some certain amount of money.

And I think we could raise a
whole lot more and build a much

bigger fund. It was so easy, we
had no problem I love when I

hear that the answer to their
question that underlies it, all

of whether we can do that or
not, is yes, you can do that. We

can make it so that your fund
raises more. When I'm drafting a

PPM and an operating agreement,
I'm always leaving in the

opportunity in order to ratchet
up the amount of money that's

raised. The reason is because I
want you to grow, right, so we

need to build that in. What has
to happen, though, is because

the dynamics that the investors
are getting, and that what

they're thinking of, they may
need to know what's going on,

right? This could be a material
change, and it probably is

somewhat material. So if I put
together a blind pool, and I say

I'm raising $5 million, and
suddenly, now I'm raising seven

$2 million more means there's a
lot of other investors, there

might be increased risk, because
there are more investors, there

might be, you know, a dilution
over what assets there are going

to be, there's something like
that, because there's this

additional amount of money.
Well, the investors who have

already subscribed, they gotta
know, you gotta tell them and

make sure that communication
comes out. So we can help you

craft that message to make sure
that it's communicated in a way

that not only is compliant, so
not only are you not gonna get

in trouble for it, but make sure
that it's a way that your

investors can see the bright
side of what you're doing. The

Bright Side of being
oversubscribed and turning it

from 5 million to 7 million, is
now you've got a more diverse

portfolio. So you have a
portfolio that is has the

opportunity to be able to lower
the risk that one asset is going

to cause trouble. Because now
you're more, you're more

diverse, you have more things
going on. The other advantage is

now you can buy new level of
opportunities, there might be

more assets that you're able to
buy, that could generate even

greater returns, you can be a
little bit more picky on the

lower performing ones, and then
go for just the super performing

ones as well. So you can build
in something higher. So that's

part of the strategy that we
come up with, with our clients

to make sure that they've
they're communicating it in the

positive way. But what you're
asking about the opposite what

about in the case where I've,
I've said I was raising 5

million, and now I'm only going
to raise three? What about that

situation? How do we deal with
that? Well, that situation has a

major bright side of it as well.
So now the investors came into

this thinking that they were
going to get this certain level

of ownership, right, they
thought they were going to be

pegged in and you know, 10%
ownership, and suddenly, now

that you need $2 million dollars
less, their percentage of

ownership has just shot up. So
it think of it like a share of

stock buyback, it's not the same
thing, because it's not cash

going into that necessarily. But
it's it's cash that it's that

overall price has gone down. So
their percentage of equity goes

up higher. So it's actually
quite a good thing when that can

happen. The challenge is, is how
do you deal with that

communication so that they see
the bright side? And also then

we need to make sure that the
mechanisms. So as a syndication

attorney, I'm always thinking
about how what are what are the

investors going to think? Is
this a problem? Is this going to

be compliant? What are the
mechanisms that are in place

that allow me to lower that
amount that I'm raising? And

also, of course, how am I going
to get any make money that comes

in? Because sometimes not very
often, but sometimes the

situation is I only raised 3
million, and I still need that

additional 2 million. So you
might use regular financing and

you might use a bank loan or you
might use a hard money lender.

There's options out there in
order to do it. Or maybe it's an

offering of a different kind of
piece of the security. Maybe

it's just a pure fixed rate
return that that some investors

can get in order to be
satisfied. Whatever that is.

There's ways to bridge that gap.
But we need to make sure that

investors know what's going on,
because investors at the end of

the day are entitled to a full
view of what this what your

investment product looks like.
So I hope that helps Hope that

helps define what happens with
the oversubscribed

undersubscribed, because it's
still a workable situation. It

happens quite often that one of
those two comes up that we need

to move things around. That's
part of why you hire an

experienced syndication attorney
like myself, who's been in that

situation not only as a
syndication attorney, but I've

been in that set in that
situation as a syndicator.

myself because I do my own
deals. So my name is Tilden

Moschetti. I am a syndication
attorney with the Moschetti

syndication Law Group. If you
think you might be able to we

might be able to help you with
your project. Give us a call.

Let's talk about what you're
working on. See if there's an

opportunity for us to help you
and we can go from there.