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Tilden Moschetti: One of the
most challenging and frustrating

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times in the role of a
syndicator, or fund manager

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comes, when you've already put
the deal together, you've

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already got the documents
assembled, you're out there

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shopping in front of investors.
And then now you're trying to

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get the investors to what I call
a latch on to the investment to

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give you their money, sign the
subscription agreement, so that

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you can close the fund that
you're raising money for.

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I am an active syndicator.
Myself, not only am I a

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syndication attorney, but I'm
also actively syndicating deals

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myself. So I know exactly what
it's like to feel that pressure

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of needing your investors to
latch on to get their money to

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make it so this deal can go
forward. So I know that

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frustration, I know the
challenge. So I have a six part

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system and I hope you'll find it
helpful. Let's go through it.

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The first step is provide the
necessary documents after your

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investors already have given you
the Okay, that sounds

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interesting, I'd probably be
interested in something like

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that. That is the time when you
provide those necessary

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documents. And here we're
talking about the private

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placement memorandum,
subscription agreement operating

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agreement, I like to provide a
questionnaire I find it helpful,

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and then provide those documents
to them. You want to also

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include anything else that would
be useful financial projections,

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marketing material, whatever it
is, put it all in a nice

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cohesive, good looking package.
Well put together presentations

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and well put together required
documents packages get you

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funded where masses do not an
investor is going to see a mass

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they're going to run away
scared. So make sure everything

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looks nice and cohesive and
clean as possible. So step

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number one, provide those
necessary documents. Step number

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two, address any questions and
concerns they have. Make sure

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that that's that you're getting
those questions and provide good

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answers. I mean, that's one of
the necessary things that takes

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place in a Regulation D
syndication is you have a duty

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to provide those kinds of
answers for any question they

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have. That's one of the things
that is absolutely required

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under the regulation. So get
those answers to them, help them

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out, help them come to the
decision. And hopefully that

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decision is they want to invest
with you. Now it's okay. When

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they give you a call. And they
ask you a question. If you don't

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know the answer to it, you can
say I don't know. Let me get

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back to you and make sure that
you get back to them quickly and

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promptly to give them a full
nice, well rounded answer. One

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of the things I as a syndication
attorney like to help my clients

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with is when those questions
come into my syndicators. They

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give me a call, and they say I'm
getting these sets of questions.

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Can you help me craft them? And
I am always happy to do that to

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help them come up with good
answers for answering those

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questions in a way that not only
is thorough and complete and

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accurate, but also pushes the
deal forward makes it more

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likely for people to invest.
Sometimes the answer is no,

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we're not willing to do that or
whatever like that. But the

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question always needs to be
answered respectfully and

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completely. So I like to as an
attorney help my my clients

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craft those responses. Step
number three is obtain soft

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commitments. Now in a perfect
world, you're getting written

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soft commitments, because when a
person writes it down, whether

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it's by an email, or whether
it's a piece of paper, or a

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letter, or whatever it is, and
they've soft committed to you,

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they're much more likely to
follow through and invest in

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your deal. So obtained soft
commitments, ideally written.

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Now also, you need this kind of
information anyway, if you're

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raising $10 million, for
whatever purpose and you you

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need to know where you're at on
on the deal, right, you need to

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have a list of all the potential
investors that you've been

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speaking with, and you need to
line it up with how much money

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people are likely to invest so
that you can hit your targeted

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raise amount. So get those soft
commitments. Those people who

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have soft committed to you are
more likely to admit, more

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likely to subscribe, then the
people who haven't committed at

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all to you. Step number four is
continue to provide social proof

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that can be something that tips
the scale Now that social proof

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can either be just generally
being on social media or

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wherever providing, you know,
way, here's a testimonial that

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we have, here's a case study,
here's a review, whatever it is,

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if it's a five of succeed,
that's not an issue at all. If

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it's a 506 B, it can be an
issue. So sometimes what I will

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do in my own raises, if I know
Person A is interested in

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investing, and they know Person
B and person B has already

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invested, I'll probably invite
both of them out for a for to go

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to have a drink, or something
like that, or go go hit some

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balls at the driving range, or
something like that, in order to

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build that relationship a little
bit further. Really what I'm

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doing not only is building a
good relationship with them, but

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I'm also building in that social
proof, because now Person B is

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going to be saying, Oh, this is
a great investment, you really

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should come into this, they're
going to be providing that that

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pressure, if you will, that
social proof, in order for a

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person a to invest. Step number
five, offer a sense of urgency.

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Urgency is a great motivator,
people have a great great, great

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fear of missing out. Now, if
they're feeling a fear of

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missing out, that is a good
thing, they're more likely to

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commit to you. So you want to be
telling them, Look, I've got

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this, I've got this investment
going on, I've raised all but

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$500,000, or whatever makes
sense of it. I've got a lot of

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commits that have already that
are very interested and

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committed, I know you want in on
this deal, I want to make sure

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that you can get in because I
want you to invest because I

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like you. And I also know you're
gonna really like this

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investment. And I'm in this for
the long haul with you. So I'd

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really like you to be able to
come into it. But I'm also I

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gotta take the first money that
comes in, and it's probably

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going to be oversubscribed,
within three days or five days

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or whatever seems reasonable at
the time. Now, that's good sense

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of like using urgency. That's a
nice, powerful sense of urgency

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where you're a powerful
syndicator. Right, so you have

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command of this thing. And
you're offering to them the

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ability to get to come in, what
you do not ever want to do is

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become a forceful syndicator,
where you're pressuring people

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like a used car salesman to come
into the investment, where you

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are like some used car salesman,
even used car salesman, turn

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syndicators, calling people and
saying, look, you've only got 24

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hours left, you got to get in
now, you got to come in now, you

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got to come in. Now, that's not
going to work. Not only does it

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deteriorates a trust, but it
also isn't it isn't even legal,

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we need to allow people to make
their own decisions without a

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forceful way of forcing them
into prying our security. So

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create the sense of urgency, but
do it the right way. Step number

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six, and probably the most
important other than providing

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the documents is follow up
regularly. You can't let this

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one die, you can't let let it go
where you have, you know, 10

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people who you need to follow up
with, and you're not calling any

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of them. Because you're working
on the next person who may call

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in. If somebody's expressed some
interest, you got to stay in

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touch with them and help them
make their decision. You don't

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need to force them go back to
sense of urgency. But you do

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need to make sure that they're
aware that gives the the idea

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that you are persistent and
professional and can make the

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case for them to come into your
investment. You don't want to

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become a pest you don't want to
bother them too much, but you

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should be following up in a
regular consistent manner. So

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let's look at our key takeaways
here are the six steps. Number

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one provide the necessary
documents create the

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comprehensive investor package
that contains all the necessary

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documents for those investors to
make their decision. It includes

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the private placement
memorandum, the subscription

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agreement, operating agreement,
business plans, financial

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projections, pictures, whatever
it is just make it good, make it

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look good. Give them wiring
instructions as well if I didn't

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mention that before, so that
way, it's all there for an

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investor when they're ready to
make it happen as quickly as

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possible. Step number two,
address those concerns and

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questions. An open line of
communications where investors

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can voice their questions, their
concerns about your investment

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is not only a good idea, it is
necessary to comply with the

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rules. You need to be ready to
address any of those questions

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with To complete transparency,
and patience, if you don't know

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the answer, say you don't know
the answer and find the answer

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and then get back to them. This
step, this step builds that

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trust and it reassures investors
that their investment is in good

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hands.

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Step number three, obtain soft
commitments. Soft commitments

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are their expression of that
they would like to invest and

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it's not legally binding, do not
assume that it is legally

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binding, do not pretend it's
legally binding, do not do

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anything where you're putting
that kind of pressure, where

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they've entered into a legally
binding thing, all you'll do is

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hurt yourself. But it is in
their mind, it may not be

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legally binding, but people are
kind of honor bound, they're

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gonna be more likely to follow
through if they've given you a

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written soft commitment. So try
to convert those soft

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commitments into the firm
commitment. By giving that keep

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giving that reassurance and give
that investment opportunity and

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get the paperwork done so that
they can commit as quickly as

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possible. Number four, provide
that social proof success

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stories of your past
syndications or testimonials

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from satisfied investors find
ways to continue to get brand

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marketing or social marketing
into your investors heads so

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that way they're more likely to
invest. Number five, offer a

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sense of urgency. Now it's
essential that you provide that

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clear timeline for investment,
make sure that those potential

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investors know that the round is
going to close. How many slots

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are left, make them have that
fear of missing out, just don't

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push them into making a decision
without without them committing

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to it themselves. They're the
ones that have to come up with

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that answer. And step number
six, follow up regularly. Don't

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let potential investors forget
about this opportunity. Follow

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up with them regularly. keep
them engaged, informed about the

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progress that you're making.
However, just be mindful, don't

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be overly aggressive or pushy.
you're striving for a balance

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between persistence and
respecting their own decision

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making process. This is Tilden
Moschetti. Syndication attorney

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for the Moschetti syndication
Law Group. Those were the six

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steps that I use in order to
latch investors to investments

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when I'm doing my own
syndications or raising money

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for my funds. If we can help you
give me a call