Wayne Courreges IIIManaging Principal, CREI Partners, CREI Partners, CREI Partners, LLC · Disciplined Passive Real Estate. Transparent Leadership.

PPM in Real Estate Syndication Investing, Part 8 Subscription Agreements

Name: PPM in Real Estate Syndication Investing, Part 8 Subscription Agreements
Uploaded: 2023-08-04T00:02:02+00:00
Duration: 44 s
Channel: Wayne Courreges III
Description: This short excerpt (from a YouTube video by Wayne Courreges III, CPM®) explains two common subscription-agreement approaches used with private placement…

4 Aug 2023 · 1 min

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This short excerpt (from a YouTube video by Wayne Courreges III, CPM®) explains two common subscription-agreement approaches used with private placement memoranda (PPMs) in real estate syndications: (1) attach the operating agreement to the PPM and use a short subscription agreement that binds the investor to the operating agreement by reference, or (2) use a long subscription agreement that restates the operating agreement terms so the investor signs the subscription directly. The speaker notes both variations are commonly seen.

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Subscription agreements could be, or they might vary. How I do mine is that I actually always attach the operating agreement to the ppm, and then my subscription agreement is very short and it basically says it's you as the investor saying, I've read the ppm, I've read the operating agreement, and my signature on the subscription agreement as is, as if I signed the operating agreement. So you're binding yourself to the term and agreeing to the terms of the operating agreement. Some that you might see. Instead, they'll have a very long subscription agreement that basically echoes all the terms of the operating agreement, and you just sign the subscription agreement directly instead. So you'll see. Those are two variations that I've seen. You probably could see other ones as well, but those are the two that I mainly see.