Kim Lisa TaylorSecurities Attorney, Founder, Syndication Attorneys, PLLC · Corporate Securities Attorney, 2x Best-Selling Author, Nationwide Speaker | Private Placement

Why Openness to Legal Advice is Key in Real Estate Syndication

6 Sept 2024 · 1 min

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In a brief dialogue, Speaker A asks about the key factors for a successful real estate syndication. Speaker B, an attorney, stresses that syndicators must be receptive to legal counsel. He explains that many newcomers design plans that are unrealistic or unattractive to investors. Attorneys can flag such issues early, noting that investors will reject deals that don’t meet market expectations. A specific example is given: offering investors only a 10% share while the sponsor retains 90% is a structure that will not attract capital, regardless of sales effort. The core message is that openness to legal advice and realistic, investor‑friendly deal structuring are essential for syndication success.

Chapters

What are some of the key factors that contribute to a successful real estate syndication?
One of the things I think, especially people that have started out with joint ventures, even if you're new, be open to listening to what we as the attorney have to say, right? Because sometimes you may have these plans on what you really want to do and they're not realistic. Right. And we can tell you that. We can say investors are not going to like that. People are not going to be interested in a deal like that regardless of how well you try to sell it. So I think sometimes people have to learn, I know you want to do what you want to do, but you also have to be open to advice that some things are not going to be interesting to other people. They were willing to give investors 10% and their take was 90%.