Most new real estate investors view syndicators as something to aspire to, because of that most new real estate investors want to become syndicators themselves.


How do you know that you can trust someone with you hard earned money?


There are a few questions that you should be asking the one offering the security:

1. Have they ever done a real estate deal similar to what they are asking before and what was the outcome?
2. Have they ever raised capital before?
3. What is the net worth of their portfolio?
4. Has the operator given a presentation of his/her accomplishments and highlights of the investment market?

At the end of the day, you should invest your money with someone you know, like, and trust.  Ask plenty of questions, play the devil's advocate, be curious about every facet of the business, business plan and company structure.


My business partner and I can run through a sample deal with you if you have any questions about qualifying a syndicator.  If you have any questions, feel free to email me at john@bugayinvestments.com, and I encourage you to check out Mark Cadles website as well- www.cadlecapital.com  

The SEC strictly governs how and from whom a real estate syndicator can raise capital.  Until 2012, the restrictions were even more rigid.  But after the Jumpstart Our Business Startups Act (JOBS), the regulations allowed for a small handful of exceptions to the otherwise restrictive rules.







​Regulation D Rule 506 B:
One can raise unlimited amount of money from an unlimited number of accredited investors, or up to 35 unaccredited investors(accredited is defined as one whose net worth exceeds $1M not including a personal residence or makes $200,000 per year or $300,000 jointly with a spouse).  Cannot raise the funds through general solicitation, there must be a substantial pre existing relationship.


Regulation D Rule 506 C:
One can raise an unlimited amount of funds from an unlimited number of accredited investors, general solicitation is permitted.


There are two other exceptions, Regulation A, and Regulation D Rule 504, but they are less common in real estate and usually require more registration with the SEC.