Syndications
Syndications
We help lead sponsors legally structure syndications so they can raise money from passive investors without breaking securities laws. Whether you’re launching your first deal or scaling your business, we’ll guide you through entity setup, compliance, and investor documents so you can focus on closing deals.
Private Placement Memorandums and Subscription Booklets
The documents that protect you. We draft bulletproof PPMs and subscription packages that clearly outline the deal, risks, and investor rights, keeping you compliant with securities laws and building investor trust. These are your legal shields, and we build them to defend you.
Operating Agreements and Limited Partnership Agreements
The foundation of your entity. We create customized governing documents that clearly define how your business operates, distributes profits, and makes decisions, built to protect you, align your team, and satisfy investor expectations.
Federal and State Blue Sky Securities Filings
Stay on the SEC’s good side. We handle all required securities filings, including Reg D and state-level Blue Sky filings, so your offering is compliant in every jurisdiction you raise capital. No missed deadlines. No legal gaps.
Frequently Asked Questions
1. What Is Syndication?
A syndication is a legal structure that allows multiple investors to pool capital into a single investment opportunity – typically real estate or other alternative assets. It gives investors access to deals that may be too large or complex to take down on their own.
2. How does a real estate syndication actually work?
The sponsor (or syndicator) identifies an investment, sets up the legal structure, and raises capital from passive investors. The sponsor manages the deal, while investors contribute funds and share in the profits – usually through preferred returns and equity splits.
3. What’s the role of the sponsor in a syndication?
The sponsor is the quarterback. They source the deal, assemble the team, negotiate financing, structure the entities, raise capital, and execute the business plan. Sponsors are responsible for reporting to investors and driving performance.
4. What types of assets are commonly syndicated?
Multifamily is the most common, but syndications are used for self-storage, mobile home parks, industrial properties, hotels, and even non-real estate assets like startups, energy projects, or specialty funds.
5. How do I legally structure a syndication?
You’ll typically use an LLC or LP for the investment entity, draft offering documents (PPM, subscription agreements, operating agreement), and file under Regulation D (506(b) or 506(c)). That’s where we come in – to make sure you stay compliant and protected.
6. What’s the difference between 506(b) and 506(c)?
506(b) allows you to raise capital from accredited and up to 35 non-accredited investors – but you can’t advertise. 506(c) allows public marketing but requires strict accredited investor verification. Each has pros and cons, depending on your strategy.
7. What documents are needed to launch a syndication?
At a minimum:
Private Placement Memorandum (PPM)
Operating Agreement (or LP Agreement)
Subscription Agreement
Investor Questionnaire
Form D (Reg D filing)
We draft and customize all of these for you – and we explain every piece along the way.
8. Do I need to be an accredited investor to participate?
It depends on the offering type. 506(c) offerings require all investors to be accredited. 506(b) allows a limited number of non-accredited investors – but you must have a pre-existing relationship with them.
9. What are the risks of participating in a syndication?
Like any investment, there’s risk – from market conditions to operator execution. Tenants might not pay. Construction could go sideways. Returns aren’t guaranteed. That’s why due diligence and solid legal docs are critical – for both sponsors and investors.
10. How can RaiseLaw help with my syndication?
We structure your deal from start to finish – entity formation, compliance, deal docs, filings, and ongoing support. Unlike most firms, we also understand the business side, because we’ve done it ourselves. You’ll get strategy, not just legal paperwork.
