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

syndication, a lot of your world
gets consumed by the world of

Regulation D, and the SEC and
syndication and funds and all

those things. But what we
oftentimes forget is that many

people in the world don't know
what we're talking about when we

say, real estate syndication,
and they would be interested,

but they just don't know. And so
a lot of times you'll get the

question, well, can you give me
an example of what a real estate

syndication would look like? So
in this video, we're going to do

just that.

My name is Tilden Moschetti. I'm
a syndication attorney with the

Moschetti syndication Law Group.
Let me give you an example of

what a real estate syndication
is. I understand that if you're

watching this video, you
probably already know what it

is, but many people don't. And
I'm oftentimes surprised myself

because I forget, you know, this
is my world that I live in 24

hours a day, seven days a week,
365 and one quarter days a year.

But most people aren't living in
this world that are thinking

about this stuff all the time.
So here is sort of an example

that I could use if I was asked,
you know, can you give me an

example of a real estate
syndication? So I probably would

say, let me tell you about one
of the first deals that I did.

So I found this piece of
property on that property, it

was already developed by a
developer, it was a medical

office property. And they had a
tenant lease already signed.

Now, I knew that who the
developer was, I already had the

relationship with them. And I
knew that they were interested

in just selling it pretty
quickly because they wanted to

move on to their next project.
So I immediately thought this is

a good opportunity to buy in at
a lower price, and get a nice

piece of real estate. I could
have bought this property for

myself. But I wanted to get
started in syndication. And so I

did this deal, right, so I
bought the property, I put the

property under contract. And
then I started looking for

investors. In this case, I have
a good network. So I was using

rule 506. B in order to find
investors. So which meant I

could take both non accredited
and accredited investors. So I

went around to all my everybody
that I know, and I talked to

them about this investment. I
said, I'm buying this piece of

real estate, I'm getting it at a
discount, because the developer

who's just finished it, they
already have the major tenant in

place and is ready to move in as
soon as development is over. But

they want to go off and do
develop another project for that

same tenant. So I'm getting it
at a good discount. Now I know

that in the area, there is only
one of these buildings and one

of this kind of tenant, this is
a medical tenant. And so I know

that this is only one. There are
some other reasons of why this,

this is a very specific purpose.
And that it's an underserved

community for the services that
this medical company provides.

So there was a there was a good
need in the marketplace for it,

which creates a value in that
tenant, right? So they want that

tenant there, the tenant is most
likely going to stay there for a

very long time and keep renewing
their leases. Also the economics

of the area, the demographics
were really, really strong. It

was strong in most areas, but it
was also uniquely strong in the

same medical service that was
necessary that was being

provided by my client by my my
tenant. So I had this great

opportunity, right? So what I
did is I divided it up, I think

it was approximately a $2
million raise. And I'm rounding

here because I don't remember
exactly. It was a $2 million

raise, and then I put financing
of another $2 million on it. So

I put a low got a loan had that
done $2 million, so I still

needed to raise $2 million. So I
divided it up into at that time,

I think I divided it up into
$50,000 shares. And then I

started selling those $50,000
shares out to people that I knew

people who were already in my
network. Now some people came in

through family some of it was
family and I would explain to

them what the family was and
they wanted to support me so

they came in others were friends
so friends were interested in

they wanted to support me as
well and they saw a good

opportunity. They knew I knew
the industry very well and so

they trusted me with their
money. The other was business

associates so business
associates knew that I knew what

I was doing that I knew the
property well and I knew what I

and that they stood to gain, you
know, well financially with it.

Some people chose to invest just
cash out of their savings out of

their checking accounts or what
have you. Some chose to invest

with their self directed IRA, at
the end of the day, we raised

that $2 million. So then at
closing, all $4 million, went to

the property, I manage that
property. I didn't hire a

property manager, it was on
basically a triple net lease, so

it wasn't very difficult to
manage. And then every quarter I

made distributions, I made
distributions to my investors,

it turned out that we were
making distributions, you know,

right around the amount that we
told investors we would be

making. And we made them very,
very regularly, we didn't let a

day go by when if we said it was
going to be probably on the

first of the month, it had to
happen on the first of the

month, or the first Monday of
the month. In order for them to

get their check. It was in we
didn't let a week go by in order

for me to make that
distribution. At the end of four

and a half years, I projected
that it was going to be a five

year term. At four and a half
years, I decided the market was

in a really good position at
that point. I wanted to sell the

property. I told all my
investors, I think it's now's

the time to sell what do you all
think? Everybody seemed to agree

with me, we, I marketed the
property I found, I did this

deal myself where I put put it
on the market. And I sold the

property myself. The first
transaction didn't go through

second one did made a lot of
money for my investors made my

final distributions. So that so
each investor, I was projecting

that each investor would make a
15% IRR, which is an internal

rate of return. So you can think
of it almost like it's 15%

annually that they were getting
from their investment. And at

the end of the day, that's they
got round like I think it was 15

and a half percent. So we
overachieved just by a little

bit. Investors got their money,
they were happy, and investors

came with me on the next round.
So that is an example of a real

estate syndication a very, very
simple one. I had one tenant, I

had a bunch of investors, I
think I had maybe 1617 investors

at that time in that deal, and
we made the money. So there is

an example of what a real estate
syndication is. Hope you found

that useful. My name is Tilden
Moschetti. I am a real estate

syndication attorney with the
Moschetti syndication Law Group.