#24 - Passive Investing: Syndication 101 – Key Players, Documents, Due Diligence, and Liquidity

Passive Income Pilots

Today on Passive Income Pilots, Tait and Ryan dive deep into the world of syndication. They explore the crucial role of the preferred return in investment distributions and discuss the significance of fund of funds as intermediaries between limited partners and operators. They also shed light on operators' responsibilities in managing investment projects and highlight essential documents in syndication deals. Additionally, they tackle liquidity issues and emphasize the importance of the Private Placement Memorandum (PPM) and thorough due diligence for investor protection. Enjoy the show!

Timestamped Show Notes

(00:00) Intro

(05:55) What is a syndication?

(09:09) Understanding preferred return, GP, LP, and others

(13:40) Turnkey investments for real estate

(14:44) What is a KP (Key Principal)?

(17:15) Non-recourse loans explained

(18:10) The role of fund of funds in a syndication

(22:05) What is an operator in real estate syndication?

(23:13) Level of due diligence when investing through a fund

(24:45) Essential documents you should expect in a syndication deal

(28:01) Do you need to establish an LLC for syndication?

(30:36) Understanding waterfalls and hurdles in syndication

(36:10) How the operator decides when to pay investors

(41:49) Checking the plan of distribution in the PPM

(43:10) Registered and unregistered securities, and the exemption

(50:40) The due diligence process for investor protection

(54:12) Outro

Resources Mentioned

#16 - Investing with Confidence: Asset Protection Strategies with Clint Coons

#6 - Transitioning from Active to Passive Investing and Diversifying Investments with Jeremy Roll

Download your FREE copy of the "Passive Investing 101" e-book HERE

Grab a FREE copy of the e-book “How to Evaluate a Sponsor” HERE

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Legal Disclaimer

The content of this podcast is provided solely for educational and informational purposes. The views and opinions expressed are those of the hosts, Tait Duryea and Ryan Gibson, and do not reflect those of any organization they are associated with, including Turbine Capital or Spartan Investment Group. The opinions of our guests are their own and should not be construed as financial advice. This podcast does not offer tax, legal, or investment advice. Listeners are advised to consult with their own legal or financial counsel and to conduct their own due diligence before making any financial decisions. The hosts, Tait Duryea and Ryan Gibson, do not necessarily endorse the views of the guests featured on the podcast, nor have the guests been comprehensively vetted by the hosts. Under no circumstances should any material presented in this podcast be used or considered as an offer to sell, or a solicitation of any offer to buy, an interest in any investment. Any potential offer or solicitation will be made exclusively through a Confidential Private Offering Memorandum related to the specific investment. Access to detailed information about the investments discussed is restricted to individuals who qualify as accredited investors under the Securities Act of 1933, as amended. Listeners are responsible for their own investment decisions and are encouraged to seek professional advice before investing.