Pooling and Syndication: Fact or Fiction
21. Jun, 2010 
5 Comments
Without a doubt, the hottest topic at the Getting the Money Bootcamp I held earlier this month was real estate syndication.
Real estate syndication is simply pooling funds to invest in real estate. I’ve been syndicating real estate and pooling investor capital for several years now and the one thing that I continually try to communicate to investors is that it’s simple and nothing to fear. IF you pay attention to and abide by the states and federal securities laws.
There is so much misinformation out there about pooling capital for real estate that I’d like to play a little game called “Fact or Fiction.”
Here we go…
It’s illegal to pool capital from private lenders to invest in real estate.
FICTION.
You can absolutely pool capital from private lenders. You just need to structure it correctly and include the required legal disclosures and legends that your state requires.
A real estate investment is not a security according to the SEC.
FICTION.
A real estate investment IS a security. I get so angry when I hear real estate investing “gurus” try to tell us that a real estate pool is not a security. It absolutely is. Here’s the US Supreme Court definition of a security:
* Money is invested in a common enterprise or endeavor.
* There is an expectation of profits.
* The profits will be forthcoming from the efforts of the promoter or third party.
Yep, that’s a security. BUT it’s nothing to fear.
I don’t have to worry about pooling because my real estate investing business can grow without it.
FICTION.
If you want to grow and scale your business past the simple “one to one” transactions, you
- must learn about real estate syndication.
So, by now you’re probably thinking, “that sounds great Susan, but how do I learn about real estate syndication?”
I have you covered, my friend. Head over to SyndicationSuccess.com for a free 3-video training series on pooling and syndication.
I’m giving up my secrets to syndicating real estate and pooling capital. You’re going to love it. 
Pool & Syndication:
Do you think it would be a good idea to have somewhere on this website where people who are in search of investors could advertise. I;m sure they would be happy to pay a fee rather than starting their own web site.
Hey Garth. A referral network/mastermind is part of my new Syndication Success program.
We closed $24M in dela slast year and ae interested in syndicating a shopping center deal in Texas. Our side will fund $550,000 and is seeking up to $2,000,0000 in additional equity. The balance of the deal will be debt financing. This is an infill shopping center in a very good part of Texas. The purchase price is a caprate on actuals of 8.5 with a 50% vacancy factor. The group we are working with are expereinced in this space and own a large portfolio of properties.
Sounds like an interesting deal. Good luck!