Watch out for the rules concerning selling securities. Depending on what you say and do you might find that you have to be SEC registered (and/or state level registered).
It might be better to just broker to people you know then to form an actual syndicate (pooled investment vehicle).
Quote:
On 2004-06-14 01:56, cjmazur wrote:
spltting the pie is based on equity and goodwill contributed. If someone throws in 100K, and me 50K, but I found the deal, it's not a 50/50 split
So what split would you require?
Quote:
as for control, it's as much or little as you want.
Generally, I would want as close to total control as I can get, since the investors are unlikely to know as much about paper as I do.
Quote:
On 2004-06-13 15:27, active_re_investor wrote:
Why syndicate?
Leverage without debt.
Quote:
Watch out for the rules concerning selling securities. Depending on what you say and do you might find that you have to be SEC registered (and/or state level registered).
True, but that may not be prohibitively expensive depending on the exemptions you qualify for.
Why syndicate?
Watch out for the rules concerning selling securities. Depending on what you say and do you might find that you have to be SEC registered (and/or state level registered).
It might be better to just broker to people you know then to form an actual syndicate (pooled investment vehicle).
John
[addsig]
There are many legal issues to be aware of as active said. Given that, I'm looking at doing just that.
spltting the pie is based on equity and goodwill contributed. If someone throws in 100K, and me 50K, but I found the deal, it's not a 50/50 split
as for control, it's as much or little as you want.
Quote:
On 2004-06-14 01:56, cjmazur wrote:
spltting the pie is based on equity and goodwill contributed. If someone throws in 100K, and me 50K, but I found the deal, it's not a 50/50 split
So what split would you require?
Quote:
as for control, it's as much or little as you want.
Generally, I would want as close to total control as I can get, since the investors are unlikely to know as much about paper as I do.
Quote:
On 2004-06-13 15:27, active_re_investor wrote:
Why syndicate?
Leverage without debt.
Quote:
Watch out for the rules concerning selling securities. Depending on what you say and do you might find that you have to be SEC registered (and/or state level registered).
True, but that may not be prohibitively expensive depending on the exemptions you qualify for.
It all depends one what you want or can negotiate.
If you want 50% of the profit, but are only dogging the deal, the investor might say no. but splitting 30/70 or even 10/90, might work.
If I have a deal, and I can make 10% by introducing party A to party B, with little or no risk, sure I'd do that.
If I do a ton of leg work and DD like am on a commercial portfolio deal, then 50/50 is what was offerred and I accepted.
It all depends on what deal you want. And the deal might be different for different investors.