Raising private money to fund a real estate syndication, a strategy followed by many who are in the business of buying and selling multifamily properties, can be complex and sometimes intimidating.
A new book by attorney Kim Lisa Taylor, “How to Legally Raise Private Money (The Definitive Guide to Syndication and Raising Money for Real Estate and Small Business)” addresses in a detailed, step-by-step fashion how to raise private money legally.
The book is a primer for syndicators on how to raise money from private investors practically and legally using the same secrets that hedge funds and private equity firms use to raise billions.
The key word, author Kim Lisa Taylor, Esq., emphasizes, is “legally.”
“Many people who are raising money from private investors fail to recognize a) that they are offering or selling securities, and b) that they must follow securities laws to legally do so,” Taylor writes.
Taylor is an experienced securities attorney who has been responsible for more than 300 securities offerings.
She is founder of the corporate securities firm Syndication Attorneys, PLLC, which is focused on helping clients structure their companies and legally raise money from private investors under federal and state securities laws.
As David Lindahl, founder of RE Mentor, says in his foreword to the book: “You assume that every commercial deal you’re doing is a security, and you follow the rules and regulations of the Securities and Exchange Commission. This will keep you safe.”
Staying on the right side of SEC regulations is just one — albeit overridingly important —aspect of the book.
Other lessons for readers on how to raise private money legally include:
- How to earn money as a syndicator
- How to split money with investors
- How to legally market your securities offering to prospective investors
- How and when to crowdfund an investment opportunity
- How to deal with foreign investors
- Who should be on your management team
- How to position your company to attract investors
- What marketing tools you need and how and when to use them
- What questions you should ask as a passive investor considering investing in a syndicate
“How to Legally Raise Private Money” is available in both paperback and Kindle editions on Amazon. You can visit the Syndication Attorneys, PLLC, website here.
Other articles by Kim Lisa Taylor: