Legal Costs for a Small Blind Pool Fund or Real Estate Syndication

I am currently enrolled in college and have no plans for the summer. As such, I am considering syndicating some real estate deals under REG D 506B with the help of friends and family. I am curious about the typical cost of legal services for creating a PPM, Operating Agreement, and Subscription Agreement (the full legal process required to launch the fund). Additionally, I would appreciate any recommendations for reputable legal services.

 

Will run you about $10-$15k. Haven't really seen a securities attorney cost less than $10k. Plus you have to add in the state blue sky filing fees. This is just the securities piece. Then you will have costs related to the property itself like PSA negotiation etc. Realistically for a one deal syndication, expect to spend about $20k.

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Figure $50K to get yourself up and running with a top notch attorney and bulletproof PPM. But go call your securities attorney and ask. Because they are going to give you a better answer than anyone here. All costs are dependent on rate charged. 
 

While I appreciate that you’re going to syndicate deals and you are going to try. 100% go for it. You will need more than 1 summer. Figure if you start this summer, you’ll have your first deal under contract in 6-9 months, closed by next summer. Sure it could go faster. But chances are you won’t start looking in May, accept LOI in June, and close by August. 

 

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