When raising capital for a real estate syndication, sponsors face a pivotal decision: selecting the type of fund structure that aligns with their investment strategy and goals. The three primary structures—Specified Syndications, Semi-Specified Funds, and Blind Pool Funds—each offer unique benefits and challenges. Understanding these differences is key to determining the best approach for a […]
Continue ReadingRaising money for a real estate investment can feel overwhelming, especially with all the rules and regulations involved. But here’s the good news: you don’t have to go through the full process of registering your offering with the government if you qualify for an exemption. Two common exemptions from registration, namely Regulation D, Rule 506(b) […]
Continue ReadingReal estate syndication is an investment structure within which multiple investors pool their capital to invest in real estate projects. Within a syndication, there are two main parties: the sponsors (or syndicators) and the investors. Sponsors, who are typically seasoned real estate professionals, take on the heavy lifting. They source and evaluate the property (or […]
Continue ReadingWhen embarking on the establishment of a real estate syndication through a Limited Liability Company (LLC), the initial and crucial step is selecting an appropriate name that aligns with legal standards. For LLCs formed in Delaware, adhering to specific regulations outlined in 20 Del. Admin. Code § 102 is paramount. Explore the following five key […]
Continue ReadingI regularly get calls from potential clients asking how they can legally raise money for others. It always goes something like this: Me: Easy, you can 1) get a broker-dealer license or 2) form a fund-of-funds. [Explains each] Potential Client (PC): That sounds hard and expensive. Can I just be part of the GP? Me: […]
Continue ReadingReal estate legal document syndication software company merges with law firm to grow; increase resources to clients IRVINE, CA and NEW YORK, NEW YORK– Bootstrap Legal, the legaltech platform that helps attorneys draft real estate syndication offering documents, announced today that its affiliate law firm, Law Office of Amy Wan, has merged with New York-based […]
Continue Readinghttps://www.youtube.com/watch?v=KjU-JdtBv9o A: Hi everybody, its Amy Wan from Bootstrap Legal. I’m here with Scott Anderson today because we are going to talk about capital raisers and raising money. Scott is the perfect guy to talk to you guys about all of this, so, Scott thanks for joining me. S: Yeah, thanks for having me. A: […]
Continue ReadingOver the past few years, a certain bubble has arisen in the real estate syndication industry that causes many of us securities attorneys to worry. A new breed of sponsors self-labelled as “capital raisers” has come into existence, and their practices of raising capital in conjunction with the sale of securities is looking increasingly more […]
Continue ReadingWhat are the different types of regulatory exemptions people can use to raise capital? When raising capital, entrepreneurs must generally register with the SEC, or fall under a regulatory exemption. Those who register with the SEC are the likes of public companies, such as the ones you see on the New York Stock Exchange or […]
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