Real Estate Syndication Template – Use THIS to Raise & Close Your Apartment Purchase Down Payment
In this video, I’m going to walk you through the best syndication templates for your new real estate private equity deal. And by the end, you’re going to know how to simply create your real estate syndication in as little as a few days. So what really is a real estate syndication template and what are some of the best ways to actually create a real estate syndication and what really is a real estate syndication and why do I even need a care? Basically, a real estate syndication is a way of collecting more money to make a larger down payments on a larger real estate deal. The people they want to buy, literally buy a house to buy and hold it right so that they can do some renovations and stuff and then hold it for five years and increase the value of it to get higher rents. But some people can’t afford to make a large down payments in a larger deal in a time frame that they want to hit their goals. So what some people do for the down payment portion of a larger deal that they can’t afford, let’s say they will have to make a 500,000 down payments or even a multi million dollar down payments to buy an apartment and to grow what they’re doing. You know, they have to raise money to put into that down payment because the lender would only give you seven, probably between 80% and 75% or 70% loan to value. (real estate syndication template)
So in other words, they would lend you like 75% of the buying price of the real estate property. So the way to get around is is just to have a bigger down payment that you can pay and afford. And so the way to do this is really there are several ways to do it. But the way that is one of the most prestigious ways to do it is to do it by selling equity, right? By announcing to the public that you’re going to sell equity to be able to. So you raise money for you to actually get the deal done and to raise equity. There are a lot of rules and regulations at the time, the recording of this video. I mean, look what happened to FCX and you can see that there’s a lot of regulation and scrutiny. So the quickest way to do it is to do it via something called a private placement documents. This is pretty much the template that you’re going to get really soon in the video. And so the compliance templates, these are the private placement memorandum, the subscription agreements, which is the agreement by which people are agreeing to invest into the deal. And then there is the private placement memorandum, because sometimes you may need them and based on this is mostly in the United States, but the same thing applies in Canada, just a subscription agreement. (real estate syndication template)
The most common way of selling the deal is through the exemptions. So the exemptions are just rules that make you not have to take your deal public, basically. And so in the United States, the easiest one and the cheapest one is the regulation, the 56c exemption. So in other words, raise capital by doing a regulation D, 56c exemption and sell your deal that way. That covers that. And in Canada, you want to do the accredited investor exemption based on your province. And in the UK it’s more easy because, you know, you just announced that you’re not you’re only targeting sophisticated investors or in the in the EU, just make sure that you’re targeting sophisticated investors. Now when it comes to actually raising the money and going to the next step, how do you actually structure it? What type of company is it? So the best way for real estate syndications is to do it via a limited partnership. Some people do it via corporation, but the best by far the best way to do it is a limited partnership because it limits the liability that investors have into the downsides of the, you know, of the day to day of the business. (real estate syndication template)
So you create something called a limited partnership, and then people are buying units into the limited partnership and you price those units at the price of the down payments that people have to make on the actual deal. And then if you do that, then people will be able to use that as the way to sell the down payment. So if you focus on selling, targeting people in your network, your family and so on, you can publicly announce that you’re selling equity into the deal. So just like somebody who has a products that they’re selling, it’s the same thing. You’re selling a product and the product is like an investments into that down payments on that deal. And so as far as the template goes, basically all the templates you need and then get a private placement memorandum and gets the subscription agreement for that. Next, you want to make sure you get the marketing materials, which is I’ve shared. And if you just click on the link in this video, then you’ll be able to get all the pieces. And finally you can get the you have to build a financial performance projections to prove to these investors that you can give the return that you’re promising. If you want to learn more, make sure you just head to. (real estate syndication template)