Are your ready to be a real estate syndicator?

What is a syndicator, anyway? A syndicator is just a person who pools money from other investors to invest, and in our case the investment would likely be investment real estate, even a single family house.

The more important question is whether the syndication is a security and must be run according to the securities laws.

What is a security? A security can be defined as 1) an investment of money 2) in a common enterprise 3) with the expectation of aq profit 4) through the efforts of the investment sponsor. So when you pool money from investors and you say that you will run the investment, it is probably a security. That is OK, but just follow the rules.

Two common misconceptions regarding the securities law are that it is not a security when the investors are "friends and families" and that it can't be a security with just two investors. Neither of these statements are true.

I have have posted an article on my website www.groupsponsor.com that you can download for free. It will tell you about the eight steps you need to take in forming and owning real estate with an investment group. Hope you take andvantage of this.

I attended my first event of this group, as a vendor, at the December 10 Christmas event in Newport Beach and met many fine people and hope to meet more of you during 2012!

Gene Trowbridge, Esq., CCIM