How To Structure A Real Estate Investment Fund | Real Estate Syndicator Live (Episode 37)

As Real Estate Investment Funds become more and more popular, many issues arise that you don't often see in a typical real estate syndication. Join Mauricio Rauld as he goes through all the options to structure your next real estate investment fund.

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0:00 Intro
0:52 Top 5 Challenges When Structuring a Fund. Challenge #1: Selecting the right exemption from your expanded list of options
2:00 Challenge #2: The length of the fund (fixed or evergreen?)
5:16 Challenge #3: How do you raise the capital? (Up front or over time?)
8:34 Challenge #4: How do you accept the initial capital contributions? (Soft commitments?)
11:01 Challenge #5: Exits – Both investor and property (Withdrawals?)
15:11 Different GP/LP Structures our top clients are using in today's market
15:54 Preferred equity vs. Common equity
16:40 Incentivizing investors to put in MORE than the minimum investment
19:02 Waterfalls
20:24 Flat/Fixed returns
21:08 The 8 and 8 Big Kahuna Model
22:38 What is the real reason for creating a fund?
24:36 What happens when you shut down your fund?
27:20 What exemption do funds typically use?
31:28 Can you do a "best efforts" return structure?
33:35 Does a sponsor need to put their own money into their deals?
34:59 Is there anything specific that funds under 506B should be aware of?
40:38 Discussing withdrawal windows in funds
43:36 What happens if you have a preferred return structure on a property that isn't cashflowing?
45:39 Structuring anything as long as it's disclosed
47:23 What should you do if one investor contributes most of the capital?
50:40 What are the most common fund structures?
53:16 How should syndicators deal with rising interest rates & lower cashflow distributions?
55:15 Is it common to do a GP split on an evergreen fund of funds?
57:25 Conclusion


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Known as one of the few lawyers that actually speaks English, Mauricio is one of the premier syndication attorneys in the country helping real estate syndicators raise hundreds of millions of dollars to pursue their dreams of financial independence.

Mauricio is the founder and Chairman of Premier Law Group and spends 100% of his practice on syndications for real estate investors. With over 22 years of securities experience, Mauricio and his team specialize in Reg D exempt offerings and educates investors from around the world on how to navigate the complex world of securities laws.

Named as a one of the Top attorney under 40 by Super Lawyers magazine, Mauricio regularly shares the stage with The Real Estate Guys and the likes of Robert Kiyosaki, Ken McElroy, Brad Sumrok, Peter Schiff, and others.

An educator at heart, Mauricio regularly travels around the country speaking to real estate investors and entrepreneurs, educating them about how the syndication legal piece fits into the overall syndication puzzle.

He is also a constant on the real estate investing podcast circuit, regularly contributing to The Real Estate Guys Radio show (consistently one of the most downloaded podcast on real estate investing) where Mauricio is Robert Helms’ personal attorney. He has also been featured on The Lifetime Cashflow through Real Estate (Rod Khleif), The Ken McElroy Podcast, and The Best Real Estate Show Ever (Joe Fairless) among countless others.

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