Real Estate syndication for
dummies. First, let's get rid of

a misnomer. You're not a dummy
for watching this. Everybody

starts out as a new person doing
real estate syndication, I did

myself about 10 years ago, you
were starting out, it's all

good. We will get you up to
speed. This video is designed to

get you everything you need to
know to feel confident about

starting to put together your
own real estate syndication.

We're gonna go through all the
major pieces that go into it,

just to give you a framework for
thinking about how to do it.

It's a big endeavor, it's a big
goal, you should be applauded

for it. It's something that is
extremely rewarding, not only

for you, but also for your
investors and for your family.

So I know that it's given a real
estate syndication has given me

enormous benefits, a lot of them
financial, but it's also given

me a lot of friends. It's given
me a lot of strength and belief

in myself. And ultimately, I've
built my entire law practice

around doing real estate
syndication as well and helping

other people on the journey. So
without further ado, let's get

right to real estate syndication
for Well, not really dummies,

but for you.

So first off, let's understand
the syndication basics. We need

to understand what exactly we're
talking about when we talk about

syndication. Essentially, a
syndication is defined as a

group of people coming together
for a common purpose. Now, I

oftentimes use the word
syndication and fun, completely

interchangeably. Why? Well, a
syndication is a group of people

coming together for a common
purpose. A Fund is a group is a

pool of money being used for a
common purpose. So to me,

they're very, very similar, if
not completely identical. So

understand that when we're
talking about real estate, we're

talking about syndication, and
we're talking about funds, I may

use the term fund and
syndication simultaneously. But

what I'm actually talking about
is getting a project done, where

you take investor money, you
manage that money into a

specific asset or into a pool of
assets, in order to achieve a

common goal, which is to make
more money. So whether that

money is by appreciation, or
whether it's straight cash flow,

whatever it is, that's a
syndication or a fund. So there

are two kinds of roles as it
comes into syndications is the

role of a sponsor and the role
of the investor. Now, as a

sponsor, that's you. So the
sponsor is somebody who's

putting the deal together, who's
identifying it, they're finding

the investors, they identify the
assets, they're doing all the

things necessary to get it
started, they have a very active

role. And in putting it
together, and they do that. So

the We also sometimes referred
to them as the GP, or the

general partner. Now
specifically, GP LP refers to a

specific kind of entity
formation, which is a limited

partnership. And you're probably
going to choose a limited

liability company. And we have
other videos on how what the

entity structure looks like. But
for this purpose, we sometimes

call them GPS, the sponsor, the
manager, really, we're talking

about you, the one who's running
the show. Your investors,

oftentimes we call them the LP,
they're the investors, right, so

your investors come in, they
pool their money, and they give

it to you in order to invest in
the specific assets. And here,

we're talking about real estate.
So investment, real estate,

whether that's multifamily
office, retail, a hotel,

whatever it is, it's generating
cash, primarily through leases

that underlie it, right. So
that's what we do. Now, in terms

of the actual structure, the
structure of these deals looks

something like this. We have an
entity here this is called the

sponsorship entity. And we have
over here an entity we call the

investment entity. So you have
the sponsorship entity here now

that here is you You are part of
that. So you're part of the

sponsorship entity, the
sponsorship entity manages the

investment entity, your
investors.

They invest here

into the investment entity, so
they invest in there. And that's

it. And if you're doing a fund,
and it has other entities, those

come here, and they're managed,
ultimately by you as the

sponsorship entity. So that is
the basic legal structure of how

all these work. So you are here,
the manager, your investors are

here, all happy to invest, and
ultimately, of the asset. So

whether this is one asset down
here, or here or here, or

multiple assets, doesn't really
matter. So this is the basic

structure. So either these are
individual LLC is down here, or

it's just the property itself.
That is how these things are

structured. In terms of the
legal framework, now, under the

rules, since whenever you have
investors who are taking a

passive role, it automatically
becomes a security as long as

the goal of that thing that
you're putting together is to

make money. So almost always,
this is a security, right? It

doesn't matter whether you have
one person investing, or 100

people investing or 1000 people,
it doesn't matter whether you're

raising $1, a million dollars,
or a billion dollars, no matter

what those are still a security.
Now, under the Securities and

Exchange Act, every security
must either be registered with

the SEC, or fall under an
exemption registration you can

think of as going public. It's a
very formal process. It's

extraordinarily expensive, with
a whole slew of lawyers and

accountants, and underwriters
all talking with the SEC. And

there's a huge amount of back
and forth goings on in order to

make sure the investment works.
That's not what we're doing what

we're doing. Here we go under an
exemption. Now, there are three

basic exemptions and the
hierarchy. And that hierarchy

looks like this. You have Reg D,
you have reg A, and you've have

reg CF. Okay, those are the
three exemptions. I work

exclusively in Regulation D
Regulation D offers, and I'll

tell you why. under Regulation
D, there are two different rules

that are primarily used. Rule
506 B, and rule 506. C, these

are the two rules that are
primarily there. Now under

Regulation D, rule 506 B, you're
gonna have an unlimited number

of accredited investors, and
then up to 35 non accredited

investors in any 90 day period,
you can raise an unlimited

amount of money. So you could
raise a billion dollars, you can

raise $10 billion, you can raise
$1 trillion. And if you can

raise $1 trillion. My god, I've
got a job for you. But you can

raise an unlimited amount of
money is the bottom line. The

only problem and the only reason
why you may not do Regulation D

rule 506. B is you cannot do a
general solicitation. A general

solicitation is where you put
something out to the general

public, you advertise it, you
market it, you put a billboard

on Main Street can't do that.
You need to make sure that and

how do we know whether or not
you've advertised? Well, we

actually know because do you
have a relationship with all of

your investors? So if you've
known all of your investors

before you put the offering
together, you must be legit

because you couldn't have gotten
those investors unless you add

that relationship. Once you
start advertising, that's when

suddenly you don't know them
anymore. The only option for

advertising is Regulation D rule
506 C under Rule 560 an

unlimited number of accredited
investors and unlimited amount

of funds you can raise. But you
have to make sure that every

single one of your accredited
investors Is in fact accredited

using a third party verification
system. So you need to make sure

they're all accredited. But then
you can advertise, you can put

something on Facebook, on Google
on YouTube, you can put up a

billboard on Main Street, that's
how you can you can get new

investors doesn't matter if you
know them don't know them. But

you still got to make sure that
every single one of them is

accredited. So there are two
other exemptions of with under

the SEC rules that are fairly
common, certainly not to the

extent of Regulation D over 96%
of all private money that's

raised under the exemptions is
through Regulation D for good

reason. The second one is
regulation, a Regulation A is

actually a terrific exemption,
it lets you raise differing

amounts of money based on the
rules that you do. The challenge

with Regulation A is it's
basically reviewed by the SEC,

which greatly slows down the
process of who can come in or

not. So the typical turnaround
time of getting a Regulation A

deal approved, is somewhere from
six months at the absolute

fastest to typically more like
nine months. The cost in

attorney fees alone is generally
around $70,000. Plus you have

necessary absolutely mandatory
accounting fees that have to

take place because you need some
third party, professional

accounting and auditing services
done by an accountant. To do it,

Regulation A oftentimes will
cost between 100 and $150,000.

And take nine months, which oh
my gosh, that's a long time and

a lot of money. So not a lot of
people use Regulation A for a

lot of these kinds of offers.
There are certainly offers that

definitely belong under
regulation and are very good.

Why? Because you can advertise
to non accredited investors, you

don't have to do a verification
of your accredited investors.

Huge benefit, right that you can
now advertise to the entire

world and still fall under an
exemption. It's like going

public, but without really going
public. So it's a lot cheaper.

So it's a really good option.
But it's just not a really good

option for a lot of people, and
certainly not a good option at

all for a new person who's
starting out in real estate

syndication or real estate
funds. The third option is

regulation CF. Now under
Regulation CF, you can raise up

to 5 million, you can advertise,
you can bring in non accredited

investors. But the real
challenge with REG CF is every

part of that transaction needs
to go through what's called a

registered portal. Now that
registered portal is not yours.

The Registered portal is a
separate company that's

advertised through a third
party. Right. So I mean, that's

been put together and approved
by FINRA. So because it's been

approved by FINRA, it has
basically a license in order to

be able to do these things. And
there's a bunch of requirements

that they need to do as well to
make sure that somebody is

there. Now the fees that a reg
CF portal, oftentimes charges

can be about 10%. A 10% is a
huge amount of money, basically

that your investors are going to
be losing that potential return.

So I mean, if they were going to
be making 20% IRR on the deal,

now suddenly, because of a reg
CF, it's now at like 10%. So

it's a huge knock on, on the
possibility to in order to do

that. So bring CF really not a
very good option in order to, to

generate to maximize

your, your offering. Almost
always you're going to choose

Regulation D, it's the big
gorilla. It's the most powerful

one. And it's actually very,
very workable to work with. So

that's the very basics of
syndication. So that's how it

all works and how it kind of
fits together. From a very high

level. Obviously, we can go into
a lot more details. And you'll

see a lot more videos on my
channel that break down into

these in in quite a bit more
detail. Now let's talk about

investor relationships and
finding investors at all. When

it comes to finding investors,
there's really kind of two ways.

And one thing that you've got to
understand first is whether

you're going to be under that
Regulation D rule 506 B or rule

506 C. If you're under 506 B,
you really have one choice as

your basic mechanism in order to
find investors and that's Going

to your own internal network,
finding out who you who in your

network all those people that
you know, everybody that you

know, are they interested in
investing? Now you certainly do

this under Reg D rule 506. C as
well, because there's more

investors, you know, wouldn't
you want your friends and family

to be able to invest challenges
that they all have to be

accredited investors at that
point, if they're in that fight

will succeed. So the basics
place that we start, when it

comes to finding investors is
our own internal network, all

the people that you know, if you
think about the spheres of

influence. So if you think about
sphere of influence, these are

people you know.

This is the people who you know,
really well, these are your best

friends, your your closing your
family members, your closest

acquaintances. And those people,
you just pick up the phone and

give them a call. Outside of
that, are your business

contacts. These are people that
you have have a relationship

with in a business setting that
you know that you can call up

and say, hey, look, you know, we
did that business, we did that

deal. A while ago, I wanted to
let you know that we're doing a

real estate syndication, and I
would love to talk to you about

it. And then you'd go through it
and discuss it with them.

Alright, so that's your business
context. That them maybe you

pick up the phone and call them.
Certainly, if you know them

pretty well. If you don't know
them, if you haven't had a lot

of dealings with them recently,
maybe just start with an email

that just says, Hey, we've lost
touch, I'd like to get back in

touch with you and talk to you
about a few things. Outside of

that business contacts, may be
those acquaintances. Now the

Queen's is starting to get into
the area that you don't really

know them. So this is an area
where you may want to build up

that relationship as shored up
before you specifically start

talking about your syndication
if you're doing a Reg D rule 506

B offering. So with those
acquaintances, you'll basically

kind of hey, I want to it's been
a while since we've talked one

to talk to you, you know, really
just about let's talk about real

estate investing and things like
that. What ultimately you want

to do is figure out two
different tests that come to

whether you have a relationship
with them. So these are these

are the tests that the court
uses in order to determine that

the whether it's substantial
enough in order to do a Reg D

rule 506 B. So tests. The first
one is do you understand them?

Do you have enough of a
relationship with them that you

have a pretty good idea of to
whether they when they decide to

make an investment decision,
that they're making a good

decision for themselves? That
they're making a decision about

something that ultimately that
investment is suitable for them?

Do you have that kind of
relationship and understand them

well enough to be able to help
them with that? The second test

is do they trust you? Now, this
is from their point of view, do

they have enough of a sense of
who you are that they have

enough trust? That essentially,
if they had a question, they

could pick up the phone and give
you a call? And have you know,

go through a you know, I had a
question about this, your

marketing material or your
private placement memorandum has

said this? I don't understand
what is this? You know, do they

have enough of a relationship
where they feel comfortable and

feel comfortable in order to do
that? If the answer is yes to

both of those got enough of a
relationship? The answer is no

to both of those or no to one of
those, you probably don't have

enough to be at that
relationship to do take them in

under a 506 b. Now you can bring
them in, you can bring them up

this scale in order to bring
them closer to you in order to

do the 506 B. And ultimately,
those are the kinds of questions

the kind of relationship you
want to be building,

understanding what they need an
investment, understand what

their needs are, and then
building that trust so that they

feel comfortable with asking you
those kinds of questions. Now

once we start leaving a quick
sentences obviously, we're in

the world of advertising. And so
doing the 506 B myths we call

people you don't know.

And so people you don't know can
come in certainly under Rule 506

C, it happens mostly through
advertising, where basically you

have a not a good drive. Or
basically you have a sales

funnel, people come in via ads.
And maybe you give them a

presentation. Then there's
interest. And then there's a

dialog. And then there's the
materials. So they go through

this process where they're
getting to know your investment

to be able to determine that
it's suitable when they can see

the ad. It's not suitable for
them yet. They don't know yet.

They you give them a
presentation that's generic,

you're talking to the world in a
presentation manner, probably.

But it's still not personalized
to them, you're not answering

their individual questions, they
raise their hand and say, Yes,

I'm interested in them. But then
then you start a dialogue. So

they set a meeting, you have
that conversation. And then

ultimately, you provide them the
private placement memorandum,

the operating agreement, the
subscription agreement and

investor questionnaire, so that
they can begin to understand

your investment very detailed,
make a good choice for

themselves, whether your
investment is right for them,

whether or not it is suitable.
So once you go down that track,

now suddenly, we need to
identify well, at these

different stages at the
different stages here. What do

we need to be telling them? What
does that communication need to

be looking like? Right, what is
the effective presentation that

can move investors in order to
do it will typically invest most

sponsors and you will start with
a pitch deck. So you'll start

with basically an overview of
what the property is, what the

fund looks like, how it
basically works. And these don't

need to be specific like into
incredible detail, it needs to

give them enough of an idea to
be able to express their

interest, in order to be able to
give them the materials of the

private placement memorandum,
which has all of the details by

dead. Now they should be
completely congruent. So they

need to be the they should match
up. If you're promising, you

know, a 20% IRR in one you
should be discussing 20% IRR

target in your private placement
memorandum. So they need to be

congruent like that, but they
don't need to be so specific.

The most important thing about
your effective presentation of

those investment opportunities
is making sure you're conveying

to them what your founder
investment theory is. So founder

investment theory is the phrase
that I use that I've come up

with in order to describe what
it is that you're talking to

your investors about. So founder
investment theory, step one is

identify what the overall
strategy is, when we're talking

about real estate, we're talking
about different strategies such

as value add a stabilized
depreciation, play a development

play, something like that re
tenanting Those that's your

general strategy that you're
taking. Underneath that is your

philosophy and your criteria,
also known as your tactics, and

their you may be targeting a
specific asset type, or maybe

you're targeting a specific kind
of geographical region. What is

it that that makes that special?
Now this in of itself is not

enough to convince an investor
right? So you can't say well,

we're going to buy value add
multifamily buildings and and

get and think that you're going
to get investors because you're

probably not you haven't done
all the work yet. But once the

you say do that, now, you need
to come up with your risk

profile, where do you sit in
terms of risk profile, because

your investors have different
risk tolerances, right. So risk

tolerance is they like very,
very low risk or they like very,

very high risk, high risk, high
return, Low risk, low return,

and you can't really cross the
line between doing a low risk,

high return thing big great if
there was such an investment,

but generally, the belief is
that from people that there's

not, so if I take a high return
deal to a very, very low risk

person, they're not going to
invest, because they're going to

smell something off, they're
gonna know that there's, they're

gonna think there's some sort of
scam going on, because you don't

get those kinds of returns from
a low risk deal. Likewise, you

can't take a low risk deal to a
low return deal to a high risk

person, they're not going to
take a very risky project and

get a low return, that's just
not their bellowing, they want

those huge grand slams in order
to do it. So you need to

understand where that risk
profile is. And then ultimately,

number four is you got to have a
good story. People make

decisions about what to invest
in based on emotions, and then

they apply to those emotions,
rationality, that is how

investment decisions are made.
Without that story, and I'm not

talking about a fictionalized
story, I'm talking about

something that people can
emotionally get their arms

around and feel good about and
want to be a part of. That's how

you do it. Once you've got your
fit, once you've got those four

parts understood, and you can
convey it into a story that

makes sense for investors and
can move them emotionally,

you've got a very compelling
investment opportunity that you

can now present in an
appropriate way. So you've been

looking, you've been finding
investors, you're presenting all

those things to them. And now is
the big part where you need to

actually be acquiring, you need
to commit to the doing this

property or this fund of
properties, you need to commit

to your investors and say we're
doing this I'm going to be

calling you for to make sure
that you have all those

materials. So you can make an
investment decision.

Now, two different things happen
at the same time, you have the

purchase of your real estate
that's going on on one track,

right, so the you're going to be
doing your due diligence, your

risk assessment, making sure
it's the kind of property that

really is something that you
want to be putting your name to

as an investment. You want to be
able to tell your friends, think

about it, if you're if your
grandma was going to be

investing in this property is
something that you can sign your

name to and say, yep, I promise
you this is as good as it's

gonna get. This is a great
property, we really believe it's

going to do amazing things. And
I hope you come along with it.

Or is it the kind of thing where
it just smells bad and you're

trying to shovel it? If it does,
don't do it? It's not worth it.

There are other deals out there
that are grand slams, that are

amazing deals that you want to
be a part of? Do those don't do

the smelly ones? So you've got
those going on one track? So

you're also looking at, well,
what's the best way that we can

structure this from a purchasing
standpoint? If you're going to a

bank? How are you going to
finance it, they're probably

going to want to know about your
investors, you tell them? No, we

because we don't have a single
investor who has over 20% of

interest other than meets,
they're not going to be

disclosed. They're just limited
partners. And the bank's, most

of the time will go along with
it. Certainly, if you get your

syndication attorney on the
phone, like I do every week,

with banks, give me a call. And
we can get that all straightened

out for you so that you can do
the financing that you need to

do and still not have to
disclose your investor. So

you're doing that deal on the
one track. The second track

that's going on at the same time
is the regulatory compliance,

the security stuff, this is
where I come into play. So as a

securities attorney, what I do
is I make sure that you're in

compliance. Now we make sure
your entities are formed, right,

with that structure that we
talked about. We draft what's

called the private placement
memorandum, the private

placement memorandum, we go
through in detail, all those

things that are necessary for
your investors to make a good

decision about whether or not
they should invest, what the

basic terms are, like what
distributions are supposed to

look like, whether there's going
to be any ability to do capital

calls, whether or not whether or
not they have voting rights, all

those things are necessary for
them to know. But it's also

important that they understand
the risks of the investment.

It's an investment. It has
inherent risks. They gotta

understand that because if
something goes wrong, you don't

want them calling you up and
saying, Well, you never told me

I could lose my money. Because
you told them in the PPM you're

covered. So that's why we make
sure we cover those rare risks

that are that have some
reasonable likelihood of

occurring and and conveying
those to them. Also, in every

syndication, there are conflicts
of interest, you're making

money. By putting this
investment together, you have a

vested stake on that you have of
your very own, on whether or not

this succeeds at what level, you
probably will make more money if

you sell the properties at one
time versus another time. And

those may be different than the
best interests of your

investors. So your investors
need to know, hey, there are

conflicts of interest, here's
what they are, make a good

decision, I'm gonna do my best
for you, but make your good

decision for yourself. So
whether or not to invest. So

those sorts of things go into
the private placement

memorandum. Now, because these
are formed as LLC is the

entities themselves are formed
his LLC season, whichever

jurisdiction is the most
appropriate than an LLC is

governed by a document called
the operating agreement. An

operating agreement is the rules
for the road of how these things

work in themselves. So what it
what is necessary, what, you

know, what the rules are a when
an investor wants out, what does

that look like, when management
fees get paid? What does that

look like? How does
distributions happen? How does

the capital accounts work, all
those things take place within

the operating agreement. Then
there's a subscription

agreement. This is where your
investors formally sign on to

your investment. In exchange for
this $100,000, you're going to

get 100 units of XYZ fund. So
that's what it what the

subscription agreement does, it
also provides several promises

from the sin from the investor,
things like I received a PPM, I

am able to make this investment.
I've been forthcoming on whether

I'm an accredited investor and
things like that, which only

protect you more, we also do an
investor questionnaire, which

also puts together the the basic
information that you are going

to need as a syndicator, from
your investors. So things that

are going to be necessary for
tax time, but also things that

comply with anti money
laundering laws and know your

customer laws. So a syndication
attorney can help put all that

together. Can you do it on your
own? Sure, you can. But why

would you, I mean, for a small
price to be paid, which is paid

for by the, by the investors
anyway, they get really

reimburse you for this cost, you
get all this level of

protection. But you can
theoretically do this for

yourself, you can write a
private placement memorandum,

you just got to make sure that
there's no conflicts that all

this stuff that's necessary to
be in a PPM is accurately and

adequately portrayed to all of
your investors. If there's one

missing piece, the whole thing
can crumble like a house of

cards, suddenly, now you owe all
of your investors money back

instantly. And that's a very,
very bad thing. Criminal

penalties can ensure in some
cases, certainly civil

penalties, and that problem of
having to give you all the money

back, we call that the right of
rescission that your investors

may have, if there is a huge
mistake that's made in the ppm

or in the operating agreement
for that matter. So that's what

a syndication attorney can do.
What also a syndication attorney

can do, at least what my firm
does, is we make sure that you

have every opportunity to be
successful. So me personally,

I've done hundreds and hundreds
and hundreds of deals for my

clients. And I've done many,
many deals for myself as well.

So I think I'm the only real
estate syndication attorney out

there who's actively doing deals
today, who's got the experience,

not only from a theoretical
point of view, a legal point of

view, but I've been in the
trenches. I've sat across from

investors and talk to them about
things. I've had all the

questions asked of me. I've
asked had investors asked me

about what why do you have this
in there? Why do you have this

in there, and I've had to
explain it, to make sure that

ultimately, I want them to
invest. And ultimately, I want

them to make money. And I've
felt that pressure. And I think

that's a huge benefit that our
clients get from it as well. And

so you can use me as a resource
to bounce questions off of us

talk about marketing, how are we
going to market this to

investors? How are we going to
do this with investors?

Investors ask questions, you
know, we're there to answer

those questions. So that's the
additional benefit that my firm

provides our clients as well. So
that That's under the whole

legal and regulatory compliance
piece. Now, certainly, as part

of that process, you're going to
need to explain what's very

important to you and your
investors is exactly how did the

finances work, and how does
profit distribution work. So

there we go into a lot of detail
in other videos about how to do

this. But what the basic idea
is, is you'll probably be paying

your investors in your first set
of deals, some sort of amount of

equity. So they're going to get
some piece of actual ownership

of the whole thing, and they
collect profits from. So

typically, what this will look
like is you will have a what's

called a waterfall, profits come
in most of the time, there will

be a preferred return. And now,
I'm just going to put numbers

here because it doesn't, these
are just, you know,

occasionally, some, some
sponsors do it this way, others

may choose completely different
numbers. So you made choose a

preferred return of 8%. That
means that the of the very first

amount of money that's
available, 8% of the amount of

money that's been invested on an
annualized basis goes back to

your investors, which leaves
some more money leftover, right?

Then out of that we saw here is
a bucket, that's an additional

pool of money that's leftover.
Here, it's split. Between

investors.

And sponsors. And that number
may be 70% 30%. Just as a rough

idea. That's a very basic
waterfall. Again, I have other

videos that go into a lot more
detail about exactly how

waterfalls work. So that's one
aspect of how profits are

divided now for you, you also
care about another thing

probably, you know, there is
proud there is not only those,

those profits, that gets split
out, but there's also fees to be

made. So typically, there's a
number of set fees that happen.

Most commonly there will be an
asset management fee. The asset

management fee, often times is
somewhere around 2% of the

amount of money that's raised.
So the total capital account,

then there will be a property
management fee, which may be

paid to you. If you're doing the
property management, or if

you're hiring a third party, it
just goes out to them. There

will be an acquisition fee. For
the work that goes into buying

the property, right, buying a
property takes a lot of work not

only from the real estate agents
in the finance team, but you are

going to be putting in a lot of
work in order to complete the

acquisition. And likewise,
there's also oftentimes a

disposition fee. That covers
the, you know, preparing the

property for sale. So putting
all the due diligence materials,

things like that. Occasionally,
there's also a finance fee. And

that's for the work that goes
into basically signing on a loan

and promising becoming a
guarantor on the loan, that's

worth something. And so
typically, they might not

typically, a lot of times there
will be a finance fee. So put

together we've got profits, and
we've got our splits is what we

normally call them in the trade
and fees, fees come out first,

those are expenses that always
get paid back before any

profits. And then comes the
split. One thing I want to

stress here in we talked about
this a little bit in conflicts

of interest. And what happens in
splits, really across the board

is the importance of ethics and
the importance of your role to

your investors. Look, these are
people who are trusting you with

a lot of money in order to make
them money. You can't promise

that you're going to make them
money, but you can promise that

you'll work your darndest to
make sure that you do and that's

what they expect from you. So
they may not necessarily they

certainly want you to succeed
did, but they also want you to

try really hard to succeed. The
most important thing is that

you're there and that you
communicate that you're an

active, you are truly an active
sponsor, it's somebody that they

can call up, if they have any
questions, they want to not only

trust you, and when they make
that give you the money, they

want to trust you at the end of
the deal. And it'd be better if

they trust you more, not only
because these are people and

that that's what you do. But
also, just from a, from a purely

materialistic standpoint, these
are the people who are also

going to be investing in your
next deal. So you want to build

that trust, you know, the best
situation is you keep making

people money, or you keep
treating them perfectly, like

wonderful investors, the great
investors that they are, that's

what you want to do. You want
your investors to feel good

about investing throughout the
entire investment. And so you do

just do the right thing. I mean,
we could go through the the

fiduciary duties, and I have
videos that talked about the

fiduciary duties that you owe
investors, the reality is, do

the right thing and talk to them
a lot. That's really what it

boils down to, if you do those
two things, 99.9% of it gets

taken care of do the right
thing, communicate a lot, treat

them the way that they should be
treated. And you're not going to

have any issues as it relates
to, to ethics or in taking care

of your investor interests.
Almost always right. There

always can be somebody who gets
a little upset about something,

something that never even
happened, perhaps we can't help

that we can just do our best.
And that's what the vast, vast,

vast majority of investors want
is work really, really hard for

them work really hard to make
them money, and really try to

make them money. If you work
really hard at it, the odds are

so tipped in your favor that
you're going to be successful,

it's almost certain that you're
going to be successful, as long

as you do really good work for
them. And they're going to see

it and they're going to
appreciate it. And there'll be

your investors in the next deal,
and the next deal and the next

deal. And you'll both be making
a lot of money together, which

is perfect. That's exactly what
you want from this relationship.

At the end of the day, you then
close the deal. So you've you've

run this deal for five years,
seven years, three years, one

month, whatever the duration is,
you do all the things that are

necessary in order to get your
investors their money back to

get them the returns that
they've appreciated, and

communicate with them about how
proud you are of this

syndication. Hopefully you are
and the deal that you've done.

And that's it. That's how you do
a real estate syndication and

all the components that take
place up in it. And I talked

about this a little bit earlier,
but my name is Tilden Moschetti.

I am a syndication attorney with
the Moschetti syndication Law

Group. Now we call this video
real estate syndication for

dummies. I know you're not a
dummy. And now certainly you

know a lot more about
syndication than you knew before

you watch this video. So
congratulations. Now look if we

can be a part of your
syndication journey, putting

together that first syndication,
putting together that fun. I'm

happy to work with new people I
work with with the huge private

equity funds with over $4
million. I also work with people

who are putting together very
small syndications. If I can be

part of that journey for you and
help you be successful, and

ultimately, the more successful
you are, the more you'll keep

hiring me to do your second,
third, fourth deal because

you're making so much money. I'd
love to be a part of that.

Please don't hesitate to give me
a call