PassivePockets: The Passive Real Estate Investing Show cover image

PassivePockets: The Passive Real Estate Investing Show

134. Inside Real Estate Syndications: A Lawyer's Perspective with Mauricio Rauld

Sep 17, 2023
Mauricio Rauld, a lawyer specializing in real estate syndications and compliance with securities laws, talks about issues to look for when investing in syndications, the importance of reading the PPM, things to look for in an operating agreement, punitive consequences of not doing a cash call, thoughts on changes to the accredited investor definition, and the pros and cons of LPs.
56:49

Episode guests

Podcast summary created with Snipd AI

Quick takeaways

  • Thoroughly research and evaluate the sponsor before investing in a syndication, paying attention to their experience, track record, and alignment with your investment objectives.
  • Reading the private placement memorandum (PPM) is crucial to gain insights into the risks, conflicts of interest, and compensation structure of the syndication.

Deep dives

Key Point 1: Due diligence on the sponsor is crucial

Before investing in a syndication, it is important to thoroughly research and evaluate the sponsor. This involves examining their experience, track record, and expertise in the specific asset class and market. Understanding the sponsor's investment philosophy and ensuring alignment with your own objectives is also essential. Paying attention to any red flags, such as bankruptcies or past convictions, can help mitigate risks and make informed investment decisions.

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