Tilden Moschetti: If you're new to syndication or running a
private equity fund, wouldn't it be nice to just bypass those
rookie mistakes so that you don't have to make them in
putting together your syndication or equity fund. My
name is Tilden Moschetti. I'm a syndication attorney with the
Moschetti syndication Law Group, I'm gonna go through those
rookie mistakes that oftentimes I see things that are easily
fixable and give you the tools to succeed quickly.
If you're new to syndication, or private equity funds, there are
some mistakes that obviously get made time and time again, you
get made by the people before you and they'll get made by the
people after you, those people are trying to raise money, buy
assets invest with other people's money. Now, these are
the mistakes that I oftentimes see in my practice, they're not
necessarily mistakes on one particular deal. But there are
mistakes that are made on an entire process of going from
that first deal all the way down three years from now and growing
into that large fund or that, you know, massive serial
syndicator, who's doing three deals a month. Now, the way we
think about things are, it's really the keys to the kingdom.
So the way that we put ourselves forward, if we can fix these
little errors, and we can think about things a little bit
differently, it'll launch your career, your progression to that
three year mark much more smoothly. So I got five key
points that I want to convey that would be that will help you
make that transition from new, two very experienced and very
successful. The first one is building your book. So building
your book, there's there two things that every investor must
do, or every syndicator must do. First off, you got to be always,
always, always, always being good. Adding investors always be
thinking about adding investors talking to your current
investors, and building your book of investors. Not only
that, but you also need to always be thinking about
building your book have other allied professionals that can
help you. Now certainly brokers are a piece of that, but I'll
talk about them in a minute. But also the loan brokers, the
people in the finance industry, if you have marketing people,
your attorneys, all those people, they always need to be
spoken to, you always need to be expanding that book that Rolodex
has to grow. Number two that you must always be doing is always
be looking for deals. Now. If you are doing real estate
syndication, you're probably looking and talking to brokers.
Brokers are definitely part of that book of business from that
first step that I told you about. But don't spend all your
time talking to brokers, brokers, most of the time are
not going to be investing into your deals, both brokers most of
the time are going to be coming to me to set up their own their
deals for them. So they're probably not that interested in
investing. They are though, the keys to the kingdom of getting
good deals, getting offers and getting good deals out there. If
you're not in real estate, and you're doing something else
always be looking for what's that next thing that I can be
doing. Even if you've got a project going right now you've
got to always be be going because as you're adding new
investors in more and more, they're going to be hungry and
need to get deals if you bring somebody in and you don't talk
to them for another for a year, a new invent potential investor
because you don't have an offer those there belong gone there.
They're lost, you will never get them. So always be looking at
deals always be trying to find what's that next deal. Now some
of my clients are really good at bringing in a lot of deals and
they drown in deals. They've got so many deals that they're
working on. That's okay, that's a better problem to have than
not have any deals at all because if you don't have any
deals you're not making any money. Number three is relying
too much on just a small at one investor or to investors. A lot
of people have like that one key person who's basically buying
like half of their half of the their units that they're
selling. That's okay that that's happening but you can't start
counting on it. Nobody owns an investor they can go away at any
given point. Even your mom and dad if they're your investors
don't necessarily need to invest in your next deal. So always be
looking, be looking for new invest yours and diversifying
your investor pool, because relying on one is just gonna
sink you, or like you can have all this momentum and then
absolutely stop, because your next deal just fell apart
because your key investor left. Number four is always be
thinking about your liquidity. So you need to be saving money
to get you through to the next deal, especially if you're
marketing. If you're doing Regulation D Rule 506c offers
where you're going to be marketing, your marketing costs
are going to be expensive. So make sure that you've got the
liquidity for you to be doing that. Also, it's important that
you're making money in the deals that you're doing. Because you
need that liquidity in order to continue to grow your business.
If you put all the money towards the equity at the end, well,
that's all great. But what how are you going to do the next
deal in between where you need to come up with a deposit or you
need to come up with something in order to do that next deal.
You always got to be paying attention to that liquidity. And
lastly, always, always, always, always, like I said, number one,
build your list of investors, you should be thinking about not
only building your investor list as it relates to, you know, if
you're doing 506 beads just growing that list, but you
should be you should be marketing yourself as a
syndicator. Not on a particular offer. If you're doing 506 B's
but as a syndicator so that you can have conversations, go out
into the wild, talk to other real other investment groups,
talk to other syndicators always just be working on growing that
list of investors with you. That's the power. I have one.
One client who started with the very first deal that he did, it
took him six months to raise $2 million. That same investor, he
raised $500 million in less than four hours. Now how did he do
it? Because he grew the list. He just grew it to such a point
that there was such a fervor of investors who wanted in with
them that all he has to do is send out an email blast and he's
answering the phone, taking in orders. That's all he has to do,
because he's always been growing his list. So key takeaways from
this. Number one, always focus on your book of business. Always
be working on the list of investors, with loan brokers
with all those key players build that Rolodex. Number two, look
for deals you do, you don't have time to rest. Just because
you're working on a deal right now does not mean you're not
working on the next deal. Number three, don't rely too heavy on
one big investor, they can pull out at any time and then
suddenly you are without anything. Number four,
syndicators should have enough funds, enough liquidity to warm
up investors to market to do that next deal. A lot of times
that needs cash, and you need that cash there you need a war
chest in order to do it. Number five, build the list of
potential investors. You always need to market yourself market
your company follow up with all potential investors, you need
your list to grow. My name is Tilden Moschetti. I'm a
syndication attorney with the Moschetti syndication lager. I
hope this video was helpful for you. Because I really do want to
see you succeed from your doing your very first deal. All the
way to doing that year three plan that three year plan where
suddenly now you are a major hotshot and you've got all the
deals and all of the investors. I'd love to see that happen. If
we can be of service to you in that end, please don't hesitate
to give us a call.