1 00:00:01,290 --> 00:00:03,390 Tilden Moschetti: If you're new to syndication or running a 2 00:00:03,390 --> 00:00:07,200 private equity fund, wouldn't it be nice to just bypass those 3 00:00:07,200 --> 00:00:10,320 rookie mistakes so that you don't have to make them in 4 00:00:10,320 --> 00:00:14,340 putting together your syndication or equity fund. My 5 00:00:14,340 --> 00:00:17,400 name is Tilden Moschetti. I'm a syndication attorney with the 6 00:00:17,400 --> 00:00:21,000 Moschetti syndication Law Group, I'm gonna go through those 7 00:00:21,000 --> 00:00:24,750 rookie mistakes that oftentimes I see things that are easily 8 00:00:24,750 --> 00:00:27,900 fixable and give you the tools to succeed quickly. 9 00:00:38,970 --> 00:00:43,391 If you're new to syndication, or private equity funds, there are 10 00:00:43,460 --> 00:00:47,743 some mistakes that obviously get made time and time again, you 11 00:00:47,813 --> 00:00:52,027 get made by the people before you and they'll get made by the 12 00:00:52,096 --> 00:00:56,310 people after you, those people are trying to raise money, buy 13 00:00:56,379 --> 00:01:00,179 assets invest with other people's money. Now, these are 14 00:01:00,248 --> 00:01:04,532 the mistakes that I oftentimes see in my practice, they're not 15 00:01:04,601 --> 00:01:08,608 necessarily mistakes on one particular deal. But there are 16 00:01:08,677 --> 00:01:12,615 mistakes that are made on an entire process of going from 17 00:01:12,684 --> 00:01:17,174 that first deal all the way down three years from now and growing 18 00:01:17,243 --> 00:01:20,974 into that large fund or that, you know, massive serial 19 00:01:21,043 --> 00:01:25,188 syndicator, who's doing three deals a month. Now, the way we 20 00:01:25,257 --> 00:01:29,403 think about things are, it's really the keys to the kingdom. 21 00:01:29,472 --> 00:01:33,686 So the way that we put ourselves forward, if we can fix these 22 00:01:33,755 --> 00:01:37,693 little errors, and we can think about things a little bit 23 00:01:37,762 --> 00:01:42,115 differently, it'll launch your career, your progression to that 24 00:01:42,184 --> 00:01:45,845 three year mark much more smoothly. So I got five key 25 00:01:45,914 --> 00:01:50,129 points that I want to convey that would be that will help you 26 00:01:50,198 --> 00:01:54,343 make that transition from new, two very experienced and very 27 00:01:54,412 --> 00:01:58,557 successful. The first one is building your book. So building 28 00:01:58,626 --> 00:02:02,771 your book, there's there two things that every investor must 29 00:02:02,841 --> 00:02:07,331 do, or every syndicator must do. First off, you got to be always, 30 00:02:07,400 --> 00:02:11,614 always, always, always being good. Adding investors always be 31 00:02:11,684 --> 00:02:15,483 thinking about adding investors talking to your current 32 00:02:15,552 --> 00:02:19,421 investors, and building your book of investors. Not only 33 00:02:19,490 --> 00:02:23,014 that, but you also need to always be thinking about 34 00:02:23,083 --> 00:02:27,159 building your book have other allied professionals that can 35 00:02:27,228 --> 00:02:31,442 help you. Now certainly brokers are a piece of that, but I'll 36 00:02:31,511 --> 00:02:35,588 talk about them in a minute. But also the loan brokers, the 37 00:02:35,657 --> 00:02:39,871 people in the finance industry, if you have marketing people, 38 00:02:39,940 --> 00:02:43,809 your attorneys, all those people, they always need to be 39 00:02:43,878 --> 00:02:48,369 spoken to, you always need to be expanding that book that Rolodex 40 00:02:48,438 --> 00:02:52,790 has to grow. Number two that you must always be doing is always 41 00:02:52,859 --> 00:02:56,659 be looking for deals. Now. If you are doing real estate 42 00:02:56,728 --> 00:03:00,873 syndication, you're probably looking and talking to brokers. 43 00:03:00,942 --> 00:03:05,226 Brokers are definitely part of that book of business from that 44 00:03:05,295 --> 00:03:09,302 first step that I told you about. But don't spend all your 45 00:03:09,371 --> 00:03:13,101 time talking to brokers, brokers, most of the time are 46 00:03:13,171 --> 00:03:17,523 not going to be investing into your deals, both brokers most of 47 00:03:17,592 --> 00:03:21,945 the time are going to be coming to me to set up their own their 48 00:03:22,014 --> 00:03:26,021 deals for them. So they're probably not that interested in 49 00:03:26,090 --> 00:03:30,373 investing. They are though, the keys to the kingdom of getting 50 00:03:30,442 --> 00:03:34,795 good deals, getting offers and getting good deals out there. If 51 00:03:34,864 --> 00:03:38,871 you're not in real estate, and you're doing something else 52 00:03:38,940 --> 00:03:42,947 always be looking for what's that next thing that I can be 53 00:03:43,016 --> 00:03:47,023 doing. Even if you've got a project going right now you've 54 00:03:47,092 --> 00:03:50,823 got to always be be going because as you're adding new 55 00:03:50,892 --> 00:03:54,899 investors in more and more, they're going to be hungry and 56 00:03:54,968 --> 00:03:59,182 need to get deals if you bring somebody in and you don't talk 57 00:03:59,251 --> 00:04:03,604 to them for another for a year, a new invent potential investor 58 00:04:03,673 --> 00:04:07,956 because you don't have an offer those there belong gone there. 59 00:04:08,025 --> 00:04:12,309 They're lost, you will never get them. So always be looking at 60 00:04:12,378 --> 00:04:16,661 deals always be trying to find what's that next deal. Now some 61 00:04:16,730 --> 00:04:21,083 of my clients are really good at bringing in a lot of deals and 62 00:04:21,152 --> 00:04:25,228 they drown in deals. They've got so many deals that they're 63 00:04:25,297 --> 00:04:29,511 working on. That's okay, that's a better problem to have than 64 00:04:29,580 --> 00:04:33,380 not have any deals at all because if you don't have any 65 00:04:33,449 --> 00:04:37,456 deals you're not making any money. Number three is relying 66 00:04:37,525 --> 00:04:41,878 too much on just a small at one investor or to investors. A lot 67 00:04:41,947 --> 00:04:46,230 of people have like that one key person who's basically buying 68 00:04:46,299 --> 00:04:50,099 like half of their half of the their units that they're 69 00:04:50,168 --> 00:04:54,451 selling. That's okay that that's happening but you can't start 70 00:04:54,520 --> 00:04:58,873 counting on it. Nobody owns an investor they can go away at any 71 00:04:58,942 --> 00:05:03,087 given point. Even your mom and dad if they're your investors 72 00:05:03,156 --> 00:05:07,578 don't necessarily need to invest in your next deal. So always be 73 00:05:07,647 --> 00:05:11,585 looking, be looking for new invest yours and diversifying 74 00:05:11,654 --> 00:05:15,523 your investor pool, because relying on one is just gonna 75 00:05:15,592 --> 00:05:19,530 sink you, or like you can have all this momentum and then 76 00:05:19,599 --> 00:05:23,399 absolutely stop, because your next deal just fell apart 77 00:05:23,468 --> 00:05:27,337 because your key investor left. Number four is always be 78 00:05:27,406 --> 00:05:31,620 thinking about your liquidity. So you need to be saving money 79 00:05:31,689 --> 00:05:35,627 to get you through to the next deal, especially if you're 80 00:05:35,696 --> 00:05:39,565 marketing. If you're doing Regulation D Rule 506c offers 81 00:05:39,634 --> 00:05:43,503 where you're going to be marketing, your marketing costs 82 00:05:43,572 --> 00:05:47,648 are going to be expensive. So make sure that you've got the 83 00:05:47,717 --> 00:05:51,931 liquidity for you to be doing that. Also, it's important that 84 00:05:52,000 --> 00:05:56,353 you're making money in the deals that you're doing. Because you 85 00:05:56,422 --> 00:06:00,774 need that liquidity in order to continue to grow your business. 86 00:06:00,844 --> 00:06:05,058 If you put all the money towards the equity at the end, well, 87 00:06:05,127 --> 00:06:09,203 that's all great. But what how are you going to do the next 88 00:06:09,272 --> 00:06:13,625 deal in between where you need to come up with a deposit or you 89 00:06:13,694 --> 00:06:17,908 need to come up with something in order to do that next deal. 90 00:06:17,977 --> 00:06:22,122 You always got to be paying attention to that liquidity. And 91 00:06:22,191 --> 00:06:26,613 lastly, always, always, always, always, like I said, number one, 92 00:06:26,682 --> 00:06:30,965 build your list of investors, you should be thinking about not 93 00:06:31,034 --> 00:06:35,387 only building your investor list as it relates to, you know, if 94 00:06:35,456 --> 00:06:39,187 you're doing 506 beads just growing that list, but you 95 00:06:39,256 --> 00:06:42,503 should be you should be marketing yourself as a 96 00:06:42,572 --> 00:06:46,855 syndicator. Not on a particular offer. If you're doing 506 B's 97 00:06:46,924 --> 00:06:51,208 but as a syndicator so that you can have conversations, go out 98 00:06:51,277 --> 00:06:55,284 into the wild, talk to other real other investment groups, 99 00:06:55,353 --> 00:06:59,774 talk to other syndicators always just be working on growing that 100 00:06:59,843 --> 00:07:03,781 list of investors with you. That's the power. I have one. 101 00:07:03,850 --> 00:07:08,203 One client who started with the very first deal that he did, it 102 00:07:08,272 --> 00:07:12,624 took him six months to raise $2 million. That same investor, he 103 00:07:12,693 --> 00:07:16,977 raised $500 million in less than four hours. Now how did he do 104 00:07:17,046 --> 00:07:21,260 it? Because he grew the list. He just grew it to such a point 105 00:07:21,329 --> 00:07:25,474 that there was such a fervor of investors who wanted in with 106 00:07:25,544 --> 00:07:29,827 them that all he has to do is send out an email blast and he's 107 00:07:29,896 --> 00:07:34,248 answering the phone, taking in orders. That's all he has to do, 108 00:07:34,318 --> 00:07:38,739 because he's always been growing his list. So key takeaways from 109 00:07:38,808 --> 00:07:43,161 this. Number one, always focus on your book of business. Always 110 00:07:43,230 --> 00:07:46,960 be working on the list of investors, with loan brokers 111 00:07:47,029 --> 00:07:51,382 with all those key players build that Rolodex. Number two, look 112 00:07:51,451 --> 00:07:55,527 for deals you do, you don't have time to rest. Just because 113 00:07:55,596 --> 00:07:59,672 you're working on a deal right now does not mean you're not 114 00:07:59,741 --> 00:08:04,094 working on the next deal. Number three, don't rely too heavy on 115 00:08:04,163 --> 00:08:08,032 one big investor, they can pull out at any time and then 116 00:08:08,101 --> 00:08:11,348 suddenly you are without anything. Number four, 117 00:08:11,417 --> 00:08:15,700 syndicators should have enough funds, enough liquidity to warm 118 00:08:15,769 --> 00:08:19,846 up investors to market to do that next deal. A lot of times 119 00:08:19,915 --> 00:08:24,060 that needs cash, and you need that cash there you need a war 120 00:08:24,129 --> 00:08:27,929 chest in order to do it. Number five, build the list of 121 00:08:27,998 --> 00:08:32,281 potential investors. You always need to market yourself market 122 00:08:32,350 --> 00:08:36,564 your company follow up with all potential investors, you need 123 00:08:36,634 --> 00:08:40,295 your list to grow. My name is Tilden Moschetti. I'm a 124 00:08:40,364 --> 00:08:44,509 syndication attorney with the Moschetti syndication lager. I 125 00:08:44,579 --> 00:08:49,000 hope this video was helpful for you. Because I really do want to 126 00:08:49,069 --> 00:08:53,283 see you succeed from your doing your very first deal. All the 127 00:08:53,352 --> 00:08:57,498 way to doing that year three plan that three year plan where 128 00:08:57,567 --> 00:09:01,643 suddenly now you are a major hotshot and you've got all the 129 00:09:01,712 --> 00:09:06,064 deals and all of the investors. I'd love to see that happen. If 130 00:09:06,133 --> 00:09:10,417 we can be of service to you in that end, please don't hesitate 131 00:09:10,486 --> 00:09:11,730 to give us a call.