Tilden Moschetti: One of the
most challenging and frustrating

times in the role of a
syndicator, or fund manager

comes, when you've already put
the deal together, you've

already got the documents
assembled, you're out there

shopping in front of investors.
And then now you're trying to

get the investors to what I call
a latch on to the investment to

give you their money, sign the
subscription agreement, so that

you can close the fund that
you're raising money for.

I am an active syndicator.
Myself, not only am I a

syndication attorney, but I'm
also actively syndicating deals

myself. So I know exactly what
it's like to feel that pressure

of needing your investors to
latch on to get their money to

make it so this deal can go
forward. So I know that

frustration, I know the
challenge. So I have a six part

system and I hope you'll find it
helpful. Let's go through it.

The first step is provide the
necessary documents after your

investors already have given you
the Okay, that sounds

interesting, I'd probably be
interested in something like

that. That is the time when you
provide those necessary

documents. And here we're
talking about the private

placement memorandum,
subscription agreement operating

agreement, I like to provide a
questionnaire I find it helpful,

and then provide those documents
to them. You want to also

include anything else that would
be useful financial projections,

marketing material, whatever it
is, put it all in a nice

cohesive, good looking package.
Well put together presentations

and well put together required
documents packages get you

funded where masses do not an
investor is going to see a mass

they're going to run away
scared. So make sure everything

looks nice and cohesive and
clean as possible. So step

number one, provide those
necessary documents. Step number

two, address any questions and
concerns they have. Make sure

that that's that you're getting
those questions and provide good

answers. I mean, that's one of
the necessary things that takes

place in a Regulation D
syndication is you have a duty

to provide those kinds of
answers for any question they

have. That's one of the things
that is absolutely required

under the regulation. So get
those answers to them, help them

out, help them come to the
decision. And hopefully that

decision is they want to invest
with you. Now it's okay. When

they give you a call. And they
ask you a question. If you don't

know the answer to it, you can
say I don't know. Let me get

back to you and make sure that
you get back to them quickly and

promptly to give them a full
nice, well rounded answer. One

of the things I as a syndication
attorney like to help my clients

with is when those questions
come into my syndicators. They

give me a call, and they say I'm
getting these sets of questions.

Can you help me craft them? And
I am always happy to do that to

help them come up with good
answers for answering those

questions in a way that not only
is thorough and complete and

accurate, but also pushes the
deal forward makes it more

likely for people to invest.
Sometimes the answer is no,

we're not willing to do that or
whatever like that. But the

question always needs to be
answered respectfully and

completely. So I like to as an
attorney help my my clients

craft those responses. Step
number three is obtain soft

commitments. Now in a perfect
world, you're getting written

soft commitments, because when a
person writes it down, whether

it's by an email, or whether
it's a piece of paper, or a

letter, or whatever it is, and
they've soft committed to you,

they're much more likely to
follow through and invest in

your deal. So obtained soft
commitments, ideally written.

Now also, you need this kind of
information anyway, if you're

raising $10 million, for
whatever purpose and you you

need to know where you're at on
on the deal, right, you need to

have a list of all the potential
investors that you've been

speaking with, and you need to
line it up with how much money

people are likely to invest so
that you can hit your targeted

raise amount. So get those soft
commitments. Those people who

have soft committed to you are
more likely to admit, more

likely to subscribe, then the
people who haven't committed at

all to you. Step number four is
continue to provide social proof

that can be something that tips
the scale Now that social proof

can either be just generally
being on social media or

wherever providing, you know,
way, here's a testimonial that

we have, here's a case study,
here's a review, whatever it is,

if it's a five of succeed,
that's not an issue at all. If

it's a 506 B, it can be an
issue. So sometimes what I will

do in my own raises, if I know
Person A is interested in

investing, and they know Person
B and person B has already

invested, I'll probably invite
both of them out for a for to go

to have a drink, or something
like that, or go go hit some

balls at the driving range, or
something like that, in order to

build that relationship a little
bit further. Really what I'm

doing not only is building a
good relationship with them, but

I'm also building in that social
proof, because now Person B is

going to be saying, Oh, this is
a great investment, you really

should come into this, they're
going to be providing that that

pressure, if you will, that
social proof, in order for a

person a to invest. Step number
five, offer a sense of urgency.

Urgency is a great motivator,
people have a great great, great

fear of missing out. Now, if
they're feeling a fear of

missing out, that is a good
thing, they're more likely to

commit to you. So you want to be
telling them, Look, I've got

this, I've got this investment
going on, I've raised all but

$500,000, or whatever makes
sense of it. I've got a lot of

commits that have already that
are very interested and

committed, I know you want in on
this deal, I want to make sure

that you can get in because I
want you to invest because I

like you. And I also know you're
gonna really like this

investment. And I'm in this for
the long haul with you. So I'd

really like you to be able to
come into it. But I'm also I

gotta take the first money that
comes in, and it's probably

going to be oversubscribed,
within three days or five days

or whatever seems reasonable at
the time. Now, that's good sense

of like using urgency. That's a
nice, powerful sense of urgency

where you're a powerful
syndicator. Right, so you have

command of this thing. And
you're offering to them the

ability to get to come in, what
you do not ever want to do is

become a forceful syndicator,
where you're pressuring people

like a used car salesman to come
into the investment, where you

are like some used car salesman,
even used car salesman, turn

syndicators, calling people and
saying, look, you've only got 24

hours left, you got to get in
now, you got to come in now, you

got to come in. Now, that's not
going to work. Not only does it

deteriorates a trust, but it
also isn't it isn't even legal,

we need to allow people to make
their own decisions without a

forceful way of forcing them
into prying our security. So

create the sense of urgency, but
do it the right way. Step number

six, and probably the most
important other than providing

the documents is follow up
regularly. You can't let this

one die, you can't let let it go
where you have, you know, 10

people who you need to follow up
with, and you're not calling any

of them. Because you're working
on the next person who may call

in. If somebody's expressed some
interest, you got to stay in

touch with them and help them
make their decision. You don't

need to force them go back to
sense of urgency. But you do

need to make sure that they're
aware that gives the the idea

that you are persistent and
professional and can make the

case for them to come into your
investment. You don't want to

become a pest you don't want to
bother them too much, but you

should be following up in a
regular consistent manner. So

let's look at our key takeaways
here are the six steps. Number

one provide the necessary
documents create the

comprehensive investor package
that contains all the necessary

documents for those investors to
make their decision. It includes

the private placement
memorandum, the subscription

agreement, operating agreement,
business plans, financial

projections, pictures, whatever
it is just make it good, make it

look good. Give them wiring
instructions as well if I didn't

mention that before, so that
way, it's all there for an

investor when they're ready to
make it happen as quickly as

possible. Step number two,
address those concerns and

questions. An open line of
communications where investors

can voice their questions, their
concerns about your investment

is not only a good idea, it is
necessary to comply with the

rules. You need to be ready to
address any of those questions

with To complete transparency,
and patience, if you don't know

the answer, say you don't know
the answer and find the answer

and then get back to them. This
step, this step builds that

trust and it reassures investors
that their investment is in good

hands.

Step number three, obtain soft
commitments. Soft commitments

are their expression of that
they would like to invest and

it's not legally binding, do not
assume that it is legally

binding, do not pretend it's
legally binding, do not do

anything where you're putting
that kind of pressure, where

they've entered into a legally
binding thing, all you'll do is

hurt yourself. But it is in
their mind, it may not be

legally binding, but people are
kind of honor bound, they're

gonna be more likely to follow
through if they've given you a

written soft commitment. So try
to convert those soft

commitments into the firm
commitment. By giving that keep

giving that reassurance and give
that investment opportunity and

get the paperwork done so that
they can commit as quickly as

possible. Number four, provide
that social proof success

stories of your past
syndications or testimonials

from satisfied investors find
ways to continue to get brand

marketing or social marketing
into your investors heads so

that way they're more likely to
invest. Number five, offer a

sense of urgency. Now it's
essential that you provide that

clear timeline for investment,
make sure that those potential

investors know that the round is
going to close. How many slots

are left, make them have that
fear of missing out, just don't

push them into making a decision
without without them committing

to it themselves. They're the
ones that have to come up with

that answer. And step number
six, follow up regularly. Don't

let potential investors forget
about this opportunity. Follow

up with them regularly. keep
them engaged, informed about the

progress that you're making.
However, just be mindful, don't

be overly aggressive or pushy.
you're striving for a balance

between persistence and
respecting their own decision

making process. This is Tilden
Moschetti. Syndication attorney

for the Moschetti syndication
Law Group. Those were the six

steps that I use in order to
latch investors to investments

when I'm doing my own
syndications or raising money

for my funds. If we can help you
give me a call