Apr 24, 2018
Legal fees can cost you some money. But it costs even more if you wait to get a lawyer until you are in trouble, maybe because you don’t know about real estate processes and paperwork. Today, my guest is Jillian Sidoti, a syndication lawyer. A syndication is when people are brought together to own an asset, such as a property, that’s brought forth by a sponsor, which provides property disclosures.
Previously, Jillian was in the music industry and barely getting by. She got sick and tired of being poor, so she went back to law school. But even she couldn’t stand lawyers. So, she got into the real estate industry thanks to her finance degree. While trying to find investors, she met her partner to create Crowdfunding Lawyers.
Topics on Today’s Episode:
- What is a syndication and why do you need one?
- Need to disclose everything - all pertinent information to save yourself from heartache and being sued
- When you make money, you will have more than one syndication - and lawyers love to follow the money
- Hire a securities or syndication lawyer to properly prepare documentation
- What happens if you do not close on a property? Will lawyer amend documents?
- 506(b) and 506(c) offerings to raise capital
- Investor qualification form and verification for accreditation
- No one is going to steal your ideas, instead you are building trust; always be a student and a teacher
- Get into the habit of vetting investors as much as they vet you
- Be responsible for your investors and their money, but don’t put them on a pedestal
- Where to raise money and capital - go to galas!
- Be cognisant - don’t talk too much or be creepy; be genuinely interested in people
- Do not pay more money than you need to pay to your investors
Links and Resources Mentioned:
- Gene Trowbridge
- Crowdfunding Lawyers
- Jillian’s email
- Jillian’s phone number is 323-799-1342
Quotes:
“Legal fees can sometimes cost you some money, but it costs you more to call me later when you’re getting into trouble.” - Jillian Sidoti
“A syndication is bringing a group of people together to own an asset that’s brought forth by a sponsor.” - Jillian Sidoti
“Every time I give one of my investors the packet...this is going to be a document. It’s going to be thick. It’s going to scare the living crap out of you.” - Corey Peterson
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