SponsorCloud
  • Products
    
    SyndicationPro
    Raise more capital in less time with our real estate syndication platform, SyndicationPro.
    Core Features
    • GP & LP Portal
    • SEC Compliant CRM
    • Email Marketing
    • Built-in eSign
    • Build Soft Reservations
    • K-1 & Document Uploads
    • ACH & Check Distribution
    • Co-Sponsor Module
    Learn MoreRequest a Demo
    SponsorDocs
    Receive top-shelf syndication documents in 2 business days through SponsorDocs.
    Core Features
    • Private Placement Memorandum
    • Operating Agreement
    • Subscription Agreement
    • Investor Questionnaire
    • Best Practices Guide
    • Attorney Review
    • 2-Day Delivery
    • eSign Setup for SynPro Users
    Learn MoreContact Sales
    SponsorNetwork
    Develop lasting partnerships with sponsors who share a passion for Syndication.
    Core Features
    • #1 Active GP Network
    • Exclusive Member Portal
    • Private Deal Offerings
    • In-Person Co-GP & JV Events
    • Access Strategic Partnerships
    • Mentorship & Live Feedback
    • Priority RSVP for Live Events
    • SponsorAcademy
    Learn MoreContact Sales
    SponsorAdmin
    Partner with experts to handle all your firm's administrative needs through deals.
    Core Features
    • Fund Administration Services
    • Fund Establishment & Launch
    • Treasury Management
    • Investor Relations
    • Fund Accounting
    • Tax Compliance
    • Fund Disposition & Waterfall Admin
    • Cost Segregation Services
    Learn MoreContact Sales
    Get a full overview of SponsorCloud's core products
    Full Products Overview
  • Company
    
    Company

    We help sponsors raise and manage capital from start to finish.

    • About Us
    • Values
    • Leadership
    • Press & Media
    • Careers
    • Case Studies
  • Pages
    
    Product
    • Home V1
    • Home V2
    • Home V3
    • About us
    • Integrations
    • Integration single
    • Blog V1
    • Blog V2
    • Blog V3
    • Blog post
    • Features V1
    • Features V2
    • Features V3
    • Careers
    • Job post
    • Help center
    • Help center category
    • Help center single
    • Pricing
    • Pricing Single
    Utility Pages
    • Sign in
    • Sign up
    • Forgot password
    • Reset password
    • Terms & conditions
    • Confirm your email
    • Demo
    • Landing page
    • More Webflow Templates
      
    Template pages
    • Start here
    • Style guide
    • Password protected
    • 404 Not found
    • Licenses
    • Changelog
  • Pricing
  • 
    Login
  • Request a demo
Cart(
0
)

Your Cart


$ 0.00 USD
  • :
Remove
Subtotal:
Pay with browser.
Continue to Checkout
No items found.
Go to pricing
Product is not available in this quantity.

Login
Contact Sales
SyndicationPro
  • Benefits
    
    Benefits

    See the core benefits of how SyndicationPro can help you raise and manage your deals.

    Top real estate investing CRM
    2-way email integration, relationship history visualized
    • Automate the Get to Know Your Investor Process
    • 360 Relationship View of Your Contacts
    • 2-Way Email Sync Notes
    • Mass Email Functionality with Segmentation
    Fundraising streamlined
    Investment Portal, Digital PPMs, eSign, Cosponsors
    • Launch an Investor Portal in Seconds
    • Take Soft Commitments for Upcoming Deals
    • Build a Digital PPM to Raise Money and Close Fast
    • Add a Cosponsor to Your Deal
    • Eliminate Hassle With Integrated eSign
    Investment management simplified
    Investor Reporting, Multi-Profiles, Delegate Access
    • Provide Your Investors With Detailed Updates
    • Calculate Distributions and Notify Your Investors
    • Everything in One Place
    • Multiple Profiles and Delegate Access for Investors
  • Pricing
  • About Us
  • Resources
    
    Resources

    Helpful insights to get the most out of SyndicationPro

    • Blog
    • Press & Media
    • Integration Center
    • Case Studies
    • Glossary
  • Pages
    
    Product
    • Home V1
    • Home V2
    • Home V3
    • About us
    • Integrations
    • Integration single
    • Blog V1
    • Blog V2
    • Blog V3
    • Blog post
    • Features V1
    • Features V2
    • Features V3
    • Careers
    • Job post
    • Help center
    • Help center category
    • Help center single
    • Pricing
    • Pricing Single
    Utility Pages
    • Sign in
    • Sign up
    • Forgot password
    • Reset password
    • Terms & conditions
    • Confirm your email
    • Demo
    • Landing page
    • More Webflow Templates
      
    Template pages
    • Start here
    • Style guide
    • Password protected
    • 404 Not found
    • Licenses
    • Changelog
  • Pricing
  • 
    Login
  • Request a demo
Cart(
0
)

Your Cart


$ 0.00 USD
  • :
Remove
Subtotal:
Pay with browser.
Continue to Checkout
No items found.
Go to pricing
Product is not available in this quantity.

Login
Request a Demo
Jan 18, 2023

7 Steps To Syndicating Real Estate Deals

Jacob Blackett
7 Steps To Syndicating Real Estate Deals
Table of Contents
Connect
Transparent Facebook Icon
Transparent Twitter Icon
Transparent Linkedin Icon
Webflow
Related articles
SyndicationPro
This is another article on the site
This is also a heading
This is a heading

There’s more than one way to tackle fundraising for real estate deals online. It has become much easier to syndicate investments online thanks to new technology.

There are multiple ways to approach syndicating, partnerships, and crowdfunding real estate investments. One is having a ‘money ready a fund’. That means raising the money and then going to look for a property. Some prefer that method as it gives them the confidence in having all the cash in advance. The downside can be winding up with a lot of idle capital and having to make up for lost months of returns when it comes to payouts to investors.

The other option is raising the money after the deal is vetted and ready to go. If you take this route, just be sure you have some verbal commitments in advance. Because you don’t want to end up having to go back to the seller to push back the closing date because you didn’t raise enough capital in time.

Here is how the process works in seven simple steps.

Get the Deal Under Contract

Go out, find the deals, and put them under contract. During this time notify partners of the upcoming opportunity. Who you can promote to will depend on what type of regulation you are operating under. Often at this stage, it may only be established relationships already in your network.

Due Diligence

Obviously, it is wise to conduct a good amount of screening and projections upfront, before going to contract. After securing some interest and the property is under contract continue with the deeper due diligence. The inspections, contractor quotes, title searches, etc.

After it gets the green light, no red flags come up and your assumptions are still on track, start raising money.

The money raised needs to be enough to cover down payment, plus renovation costs and some reserves. This is usually at least a 25% down payment and the remaining can be provided by a bank. You may also invest alongside your partners. It’s best to raise more upfront, versus going back to your investors once you run out of money.

The Legal Stuff

You always want to coordinate with an experienced attorney to get this side done. Everything needs to be laid out to partners, especially risks involved with the investment. It’s always best to give them more disclosure to cover yourself. You want to make sure they fully understand everything, and that you are covered.

Regulations

Depending on what rule you are raising funds under you can solicit to the public, only to accredited investors, only stick to established relationships. You can also ‘test the waters’ and gain commitments to prove your concept before finalizing your filings. Understand how these different regulations work, which is best for your desired structure and what the legal costs are going to be. Your website can also prove to be a great asset here in helping to stay within regulations and streamline any checks needed to ensure your investors qualify for your offering.

You may use SyndicationPro to raise capital under Regulation D exemptions like Rule 504, 506(b), 506(c), Reg A, and Reg A+.

Publish the Offering Online

Publishing your syndicated and real estate crowdfunding investments online has more benefits than just gaining visibility and making it convenient for investors to participate. It’s also valuable for enabling your investors to have everything at their fingertips. They can go there and view documents, which will include the prospectus and private placement memorandum, as well as updates. Having a robust online platform to handle this is going to be critical for managing investors over time and still having the time to do your best work at finding and managing the deals and profitable exits.

SyndicationPro technology has been used to publish and manage capital raises across millions of dollars worth of deals. This technology can be synced with your existing website and customized with your own colors and logo.

Raise Money

Some syndicators raise money in advance to go find deals. As do funds. Others do the deals, and then seek to raise capital to cash out their own positions.

The first time you do this may take longer to bring in all the required capital. Once you get into a good system and pace and build a database, the time frame to raise for each new project should drop significantly.

Close the Deal

Once all the money is in place and due diligence is polished, it’s time for the closing. This can sometimes feel like more of a marathon than a sprint, but the results are well worth it.

Summary

New software and regulations have made it easier to raise capital online. There are several levels of crowdfunding for real estate, which come with different rules and options for fundraising for real estate deals. Know your choices, get good legal help, and get familiar with all the steps in your process so that you can roll out a successful offering.

SponsorCloud

Jacob Blackett

Founder

Originally from Reno, Nevada, Jacob began his real estate career in 2010 as a sophomore at the University of Nevada, Reno, when he bought...





SponsorCloud

Jacob Blackett

Founder

Originally from Reno, Nevada, Jacob began his real estate career in 2010 as a sophomore at the University of Nevada, Reno, when he bought...





SponsorCloud

Sign up for our newsletter

Elementum venenatis porta habitant dolorel fermentum eget fermentum.


Thanks for joining our newsletter.
Oops! Something went wrong.

Related posts

Browse all posts
Real Estate Syndication News & Tips July, 2019 [Updated]

Real Estate Syndication News & Tips July, 2019 [Updated]

Read more

6 Benefits of Investing in Real Estate Syndication Over Private Real Estate Funds

6 Benefits of Investing in Real Estate Syndication Over Private Real Estate Funds

Real estate investing can be a challenging pursuit...

Read more


Ready to get started? Contact us today.

Request a demoSee pricing
Company
  • Home
  • About Us
  • Pricing
  • Request a demo
  • Press &Media
  • Leadership
  • Contact Us
Resources
  • Blog
  • Glossary
  • Case Studies
  • Security
  • Integration Center
  • Careers
Benefits
  • SEC Compliance CRM
  • Fundraising Automation
  • Investor Portal
  • Investment Management
  • ACH Payments
Data Handling
  • Terms of Service
  • Privacy Policy
Business Hours
SyndicationPro
Mon to Fri: 9 AM to 5 PM ET
Closed on US Holidays
Contact Us
SyndicationPro
info@syndicationpro.com
SyndicationPro
Sales: (405) 816-8183
Support: (346) 766-2236
SyndicationPro

Copyright © 2023 SyndicationPro, LLC — All Rights Reserved