LLC Agreement/ Partnership Agreement
A group of close friends are pooling a large sum of capital for diversified real estate investing. Shoud the LLC Partnership prepare a Private Placement Memorandum, or the Operating Agreement is sufficient since it will be a closely held group? If a PPM is required, how extensive should it be when the General Partner is taking most of the risk?
Thanks!
Jurdinew
A PPM is not required, except if the LLC or the partnership seeks private money outside the realm of the LLC members or the partnerships partners.
Actually a PPM is never required. It is done to protect your ass in case somebody later comes back and says you failed to disclose some important part of the deal.