Real EstateSyndication

What is Real Estate Syndication?

Real Estate Syndication –is simply the pooling of funds from numerous investors and channeling those funds into real estate projects.

What you use the funds for?• Purchase property 100%• Equity sharing• Rehab/Redevelopment• Hard Money Loans to Third Parties

What Properties buy with Syndication?

• Residential (Single and Multi)• Commercial (5+ units, offices, shopping, land)• Foreclosures at courthouse steps• Short Sales & REO

• Wholesale• Flip

Short Term

• Buy and Hold• Hard Money

Long Term

Advantages of Syndication

Private Money

Hard Money

High Interest Rates & Fees

70% or below

Paperwork and Process

Low Cost

100% Funding

Fast EasyAccess

•Compile a list of possible investors•Invite them to a meeting

Step 1 Meeting of the Minds

Step 2 Sign Agreements

ApplicationOwnership Sharing RequirementsConfidential Disclosure AgreementNon Competing Agreement

One LLC per property (“Easy” Way)Ownership proportioned to contribution.“You” as manager/member, even if no

money invested in the entity.

Step 3 Locate Properties

Step 4Form Legal Entity

Send proposal for intended purchase.First come, first serve basis – allocate

ownership.

Step 5 Syndicator Responsibilities

Finding Properties

Analyzing the deals in order to establish if they are

suitable for the goals of the group

Supervising construction and maintenance

Selling the properties or secure long term financing

Managing the ownership group – regular meetings

Consulting/Acquisition Fees

• 1% to 5% or/and flat fee

Brokerage Fees (if licensed)

Asset Management Fees

• 3% of gross revenues or asset cost

Maintenance and Construction Fees

Percentage of profit on sale or disposition

• 8%-12% goes to Investor

• 10%-50% of Equity goes to Syndicator

Step 6 Syndicator Compensation

Property bought on Courthouse Steps – hold time 6

monthsPurchase Price $100,000Rehab Cost $ 30,000Final Selling Price $175,000

Acquisition $1,000 + 2% or $2,000

Asset Management Fees 3% of asset cost or $3,900

Construction Co. Fee $5,000Brokerage Fee (if licensed) 3% of sale price

or $5,250Equity Participation Fee• Investor receives 10% or $13,000• Syndicator receives 28% of Equity

Example:

Final Selling Price $175,000Less:

Purchase + Rehab $130,000 Interest to Investor @10% $13,000 a year

Brokerage Fees $10,500 (6% of SP)Asset Mngt. Fee $3,900Acquisition Fee $3,000Miscell (Ins., Title, etc.) $2,000

NET to Syndicator$12,600 or 28%

Breakdown:

St Louis Real Estate Coaching

Real Estate SyndicationBootCamp

December 8 (Saturday) 9:00am to 5:00pmat The Hive@44

5 spots left$495

$395 if you Sign Up Tonight