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Five Exit Strategies for Real Estate Syndications

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Manage episode 421375449 series 3311431
Content provided by Tilden Moschetti, Esq. and Moschetti Law Group - Syndication Attorneys. All podcast content including episodes, graphics, and podcast descriptions are uploaded and provided directly by Tilden Moschetti, Esq. and Moschetti Law Group - Syndication Attorneys or their podcast platform partner. If you believe someone is using your copyrighted work without your permission, you can follow the process outlined here https://player.fm/legal.

Navigating your way out of a real estate syndication or equity fund investment requires proper planning and strategic execution. There are five primary exit strategies to consider, each with its unique benefits and potential drawbacks. The first and most common method is selling the asset outright and then distributing the proceeds according to the agreed-upon terms in the operating agreement. The second strategy involves refinancing the property to pull out equity and distribute that cash to investors. However, this method requires careful valuation to ensure fair market value. A third option is recapitalization, which involves restructuring the capital stack to return some of the investors' capital sooner, thereby increasing the Internal Rate of Return (IRR). A fourth approach involves a 1031 exchange, but this can be complex if some investors want to exit the syndication. Finally, a merger or acquisition can provide an exit strategy, although this typically occurs with larger portfolios and requires careful planning and communication with investors.

Read more about real estate syndication - What Is Real Estate Syndication?: https://www.moschettilaw.com/what-is-real-estate-syndication/

Read more about Reg D - What is Reg D? The King of Securities Exceptions: https://www.moschettilaw.com/reg-d/

Moschetti Syndication Law Group is a boutique syndication law firm, serving small and growth-bound syndicators, as well as private equity firms. Our attorney, Tilden Moschetti, is determined to keep the firm’s ‘boutique’ size so we can tailor the services to each client’s unique needs without turning the firm into a faceless factory churning out private placement memorandums or passing unnecessary overhead expenses onto our clients. (As our client, you’ll only pay a fixed fee, so no surprises.) As for the client experience, we give real-time answers with Tilden Moschetti without making you book an official appointment or get passed along to associates or paralegals. We’ll work with your ambitions and overall vision to help you close the current deal and fill in that ‘missing’ piece – whatever you need – to keep adding more syndications to your portfolio. We keep syndicators syndicating (TM).

★☆★ CONNECT WITH THE MOSCHETTI SYNDICATION LAW GROUP ★☆★
YouTube: https://www.youtube.com/channel/UCVh1CNQULC45Bh6j4WV2sjA?sub_confirmation=1
Facebook: https://www.facebook.com/syndication.attorneys/
LinkedIn: https://www.linkedin.com/company/moschettilaw
Messenger: https://m.me/tildenm
Web: https://www.moschettilaw.com

#Syndication #PrivatePlacementMemorandum #PPM

------Disclaimer------

Also, please note, this video and any content from Moschetti Syndication Law Group, Tilden, or anyone affiliated with either or both, does not, and is not intended to, constitute legal advice; instead, all information, content, and materials available on this site are for general informational purposes only. Information from these online sources may not constitute the most up-to-date legal or other information.

No viewer, user, or browser of content from us should act or refrain from acting on the basis of information on this site without first seeking legal advice from counsel in the relevant jurisdiction. Only your individual attorney can provide assurances that the information contained herein – and your interpretation of it – is applicable or appropriate to your particular situation.

  continue reading

141 episodes

Artwork
iconShare
 
Manage episode 421375449 series 3311431
Content provided by Tilden Moschetti, Esq. and Moschetti Law Group - Syndication Attorneys. All podcast content including episodes, graphics, and podcast descriptions are uploaded and provided directly by Tilden Moschetti, Esq. and Moschetti Law Group - Syndication Attorneys or their podcast platform partner. If you believe someone is using your copyrighted work without your permission, you can follow the process outlined here https://player.fm/legal.

Navigating your way out of a real estate syndication or equity fund investment requires proper planning and strategic execution. There are five primary exit strategies to consider, each with its unique benefits and potential drawbacks. The first and most common method is selling the asset outright and then distributing the proceeds according to the agreed-upon terms in the operating agreement. The second strategy involves refinancing the property to pull out equity and distribute that cash to investors. However, this method requires careful valuation to ensure fair market value. A third option is recapitalization, which involves restructuring the capital stack to return some of the investors' capital sooner, thereby increasing the Internal Rate of Return (IRR). A fourth approach involves a 1031 exchange, but this can be complex if some investors want to exit the syndication. Finally, a merger or acquisition can provide an exit strategy, although this typically occurs with larger portfolios and requires careful planning and communication with investors.

Read more about real estate syndication - What Is Real Estate Syndication?: https://www.moschettilaw.com/what-is-real-estate-syndication/

Read more about Reg D - What is Reg D? The King of Securities Exceptions: https://www.moschettilaw.com/reg-d/

Moschetti Syndication Law Group is a boutique syndication law firm, serving small and growth-bound syndicators, as well as private equity firms. Our attorney, Tilden Moschetti, is determined to keep the firm’s ‘boutique’ size so we can tailor the services to each client’s unique needs without turning the firm into a faceless factory churning out private placement memorandums or passing unnecessary overhead expenses onto our clients. (As our client, you’ll only pay a fixed fee, so no surprises.) As for the client experience, we give real-time answers with Tilden Moschetti without making you book an official appointment or get passed along to associates or paralegals. We’ll work with your ambitions and overall vision to help you close the current deal and fill in that ‘missing’ piece – whatever you need – to keep adding more syndications to your portfolio. We keep syndicators syndicating (TM).

★☆★ CONNECT WITH THE MOSCHETTI SYNDICATION LAW GROUP ★☆★
YouTube: https://www.youtube.com/channel/UCVh1CNQULC45Bh6j4WV2sjA?sub_confirmation=1
Facebook: https://www.facebook.com/syndication.attorneys/
LinkedIn: https://www.linkedin.com/company/moschettilaw
Messenger: https://m.me/tildenm
Web: https://www.moschettilaw.com

#Syndication #PrivatePlacementMemorandum #PPM

------Disclaimer------

Also, please note, this video and any content from Moschetti Syndication Law Group, Tilden, or anyone affiliated with either or both, does not, and is not intended to, constitute legal advice; instead, all information, content, and materials available on this site are for general informational purposes only. Information from these online sources may not constitute the most up-to-date legal or other information.

No viewer, user, or browser of content from us should act or refrain from acting on the basis of information on this site without first seeking legal advice from counsel in the relevant jurisdiction. Only your individual attorney can provide assurances that the information contained herein – and your interpretation of it – is applicable or appropriate to your particular situation.

  continue reading

141 episodes

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