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Tilden Moschetti: When you're
putting together a real estate

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syndication, a lot of your world
gets consumed by the world of

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Regulation D, and the SEC and
syndication and funds and all

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those things. But what we
oftentimes forget is that many

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people in the world don't know
what we're talking about when we

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say, real estate syndication,
and they would be interested,

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but they just don't know. And so
a lot of times you'll get the

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question, well, can you give me
an example of what a real estate

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syndication would look like? So
in this video, we're going to do

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just that.

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My name is Tilden Moschetti. I'm
a syndication attorney with the

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Moschetti syndication Law Group.
Let me give you an example of

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what a real estate syndication
is. I understand that if you're

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watching this video, you
probably already know what it

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is, but many people don't. And
I'm oftentimes surprised myself

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because I forget, you know, this
is my world that I live in 24

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hours a day, seven days a week,
365 and one quarter days a year.

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But most people aren't living in
this world that are thinking

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about this stuff all the time.
So here is sort of an example

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that I could use if I was asked,
you know, can you give me an

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example of a real estate
syndication? So I probably would

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say, let me tell you about one
of the first deals that I did.

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So I found this piece of
property on that property, it

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was already developed by a
developer, it was a medical

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office property. And they had a
tenant lease already signed.

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Now, I knew that who the
developer was, I already had the

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relationship with them. And I
knew that they were interested

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in just selling it pretty
quickly because they wanted to

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move on to their next project.
So I immediately thought this is

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a good opportunity to buy in at
a lower price, and get a nice

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piece of real estate. I could
have bought this property for

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myself. But I wanted to get
started in syndication. And so I

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did this deal, right, so I
bought the property, I put the

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property under contract. And
then I started looking for

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investors. In this case, I have
a good network. So I was using

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rule 506. B in order to find
investors. So which meant I

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could take both non accredited
and accredited investors. So I

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went around to all my everybody
that I know, and I talked to

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them about this investment. I
said, I'm buying this piece of

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real estate, I'm getting it at a
discount, because the developer

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who's just finished it, they
already have the major tenant in

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place and is ready to move in as
soon as development is over. But

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they want to go off and do
develop another project for that

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same tenant. So I'm getting it
at a good discount. Now I know

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that in the area, there is only
one of these buildings and one

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of this kind of tenant, this is
a medical tenant. And so I know

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that this is only one. There are
some other reasons of why this,

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this is a very specific purpose.
And that it's an underserved

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community for the services that
this medical company provides.

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So there was a there was a good
need in the marketplace for it,

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which creates a value in that
tenant, right? So they want that

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tenant there, the tenant is most
likely going to stay there for a

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very long time and keep renewing
their leases. Also the economics

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of the area, the demographics
were really, really strong. It

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was strong in most areas, but it
was also uniquely strong in the

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same medical service that was
necessary that was being

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provided by my client by my my
tenant. So I had this great

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opportunity, right? So what I
did is I divided it up, I think

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it was approximately a $2
million raise. And I'm rounding

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here because I don't remember
exactly. It was a $2 million

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raise, and then I put financing
of another $2 million on it. So

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I put a low got a loan had that
done $2 million, so I still

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needed to raise $2 million. So I
divided it up into at that time,

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I think I divided it up into
$50,000 shares. And then I

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started selling those $50,000
shares out to people that I knew

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people who were already in my
network. Now some people came in

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through family some of it was
family and I would explain to

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them what the family was and
they wanted to support me so

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they came in others were friends
so friends were interested in

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they wanted to support me as
well and they saw a good

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opportunity. They knew I knew
the industry very well and so

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they trusted me with their
money. The other was business

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associates so business
associates knew that I knew what

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I was doing that I knew the
property well and I knew what I

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and that they stood to gain, you
know, well financially with it.

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Some people chose to invest just
cash out of their savings out of

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their checking accounts or what
have you. Some chose to invest

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with their self directed IRA, at
the end of the day, we raised

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that $2 million. So then at
closing, all $4 million, went to

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the property, I manage that
property. I didn't hire a

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property manager, it was on
basically a triple net lease, so

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it wasn't very difficult to
manage. And then every quarter I

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made distributions, I made
distributions to my investors,

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it turned out that we were
making distributions, you know,

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right around the amount that we
told investors we would be

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making. And we made them very,
very regularly, we didn't let a

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day go by when if we said it was
going to be probably on the

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first of the month, it had to
happen on the first of the

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month, or the first Monday of
the month. In order for them to

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get their check. It was in we
didn't let a week go by in order

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for me to make that
distribution. At the end of four

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and a half years, I projected
that it was going to be a five

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year term. At four and a half
years, I decided the market was

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in a really good position at
that point. I wanted to sell the

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property. I told all my
investors, I think it's now's

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the time to sell what do you all
think? Everybody seemed to agree

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with me, we, I marketed the
property I found, I did this

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deal myself where I put put it
on the market. And I sold the

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property myself. The first
transaction didn't go through

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second one did made a lot of
money for my investors made my

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final distributions. So that so
each investor, I was projecting

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that each investor would make a
15% IRR, which is an internal

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rate of return. So you can think
of it almost like it's 15%

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annually that they were getting
from their investment. And at

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the end of the day, that's they
got round like I think it was 15

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and a half percent. So we
overachieved just by a little

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bit. Investors got their money,
they were happy, and investors

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came with me on the next round.
So that is an example of a real

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estate syndication a very, very
simple one. I had one tenant, I

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had a bunch of investors, I
think I had maybe 1617 investors

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at that time in that deal, and
we made the money. So there is

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an example of what a real estate
syndication is. Hope you found

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that useful. My name is Tilden
Moschetti. I am a real estate

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syndication attorney with the
Moschetti syndication Law Group.