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How do you deal with
oversubscribed syndications or

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undersubscribed syndications?
Can you do it? Is it possible?

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What do I do? How do I
communicate it what what has to

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happen in order to be compliant?
Fat is exactly what this video

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is about.

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My name is Tilden Moschetti. I
am a syndication attorney with

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the Moschetti syndication Law
Group. Sometimes some of my

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sponsors come to me with the
great problem of, hey, I've

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raised $5 million, I've raised
some certain amount of money.

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And I think we could raise a
whole lot more and build a much

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bigger fund. It was so easy, we
had no problem I love when I

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hear that the answer to their
question that underlies it, all

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of whether we can do that or
not, is yes, you can do that. We

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can make it so that your fund
raises more. When I'm drafting a

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PPM and an operating agreement,
I'm always leaving in the

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opportunity in order to ratchet
up the amount of money that's

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raised. The reason is because I
want you to grow, right, so we

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need to build that in. What has
to happen, though, is because

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the dynamics that the investors
are getting, and that what

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they're thinking of, they may
need to know what's going on,

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right? This could be a material
change, and it probably is

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somewhat material. So if I put
together a blind pool, and I say

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I'm raising $5 million, and
suddenly, now I'm raising seven

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$2 million more means there's a
lot of other investors, there

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might be increased risk, because
there are more investors, there

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might be, you know, a dilution
over what assets there are going

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to be, there's something like
that, because there's this

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additional amount of money.
Well, the investors who have

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already subscribed, they gotta
know, you gotta tell them and

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make sure that communication
comes out. So we can help you

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craft that message to make sure
that it's communicated in a way

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that not only is compliant, so
not only are you not gonna get

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in trouble for it, but make sure
that it's a way that your

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investors can see the bright
side of what you're doing. The

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Bright Side of being
oversubscribed and turning it

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from 5 million to 7 million, is
now you've got a more diverse

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portfolio. So you have a
portfolio that is has the

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opportunity to be able to lower
the risk that one asset is going

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to cause trouble. Because now
you're more, you're more

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diverse, you have more things
going on. The other advantage is

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now you can buy new level of
opportunities, there might be

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more assets that you're able to
buy, that could generate even

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greater returns, you can be a
little bit more picky on the

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lower performing ones, and then
go for just the super performing

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ones as well. So you can build
in something higher. So that's

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part of the strategy that we
come up with, with our clients

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to make sure that they've
they're communicating it in the

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positive way. But what you're
asking about the opposite what

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about in the case where I've,
I've said I was raising 5

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million, and now I'm only going
to raise three? What about that

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situation? How do we deal with
that? Well, that situation has a

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major bright side of it as well.
So now the investors came into

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this thinking that they were
going to get this certain level

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of ownership, right, they
thought they were going to be

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pegged in and you know, 10%
ownership, and suddenly, now

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that you need $2 million dollars
less, their percentage of

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ownership has just shot up. So
it think of it like a share of

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stock buyback, it's not the same
thing, because it's not cash

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going into that necessarily. But
it's it's cash that it's that

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overall price has gone down. So
their percentage of equity goes

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up higher. So it's actually
quite a good thing when that can

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happen. The challenge is, is how
do you deal with that

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communication so that they see
the bright side? And also then

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we need to make sure that the
mechanisms. So as a syndication

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attorney, I'm always thinking
about how what are what are the

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investors going to think? Is
this a problem? Is this going to

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be compliant? What are the
mechanisms that are in place

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that allow me to lower that
amount that I'm raising? And

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also, of course, how am I going
to get any make money that comes

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in? Because sometimes not very
often, but sometimes the

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situation is I only raised 3
million, and I still need that

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additional 2 million. So you
might use regular financing and

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you might use a bank loan or you
might use a hard money lender.

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There's options out there in
order to do it. Or maybe it's an

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offering of a different kind of
piece of the security. Maybe

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it's just a pure fixed rate
return that that some investors

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can get in order to be
satisfied. Whatever that is.

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There's ways to bridge that gap.
But we need to make sure that

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investors know what's going on,
because investors at the end of

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the day are entitled to a full
view of what this what your

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investment product looks like.
So I hope that helps Hope that

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helps define what happens with
the oversubscribed

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undersubscribed, because it's
still a workable situation. It

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happens quite often that one of
those two comes up that we need

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to move things around. That's
part of why you hire an

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experienced syndication attorney
like myself, who's been in that

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situation not only as a
syndication attorney, but I've

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been in that set in that
situation as a syndicator.

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myself because I do my own
deals. So my name is Tilden

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Moschetti. I am a syndication
attorney with the Moschetti

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syndication Law Group. If you
think you might be able to we

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might be able to help you with
your project. Give us a call.

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Let's talk about what you're
working on. See if there's an

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opportunity for us to help you
and we can go from there.