How to Succeed in Real Estate Syndication: Expert Legal Advice & Investor Loans in Florida

Are you interested in how to succeed in real estate syndication: expert legal advice & investor loans in Florida as a way to invest in properties without managing everything yourself? In Episode 7 of our podcast "Everything About Wealth" (available on YouTube), my partner Desiree Troncoso and I interviewed Jean Trollbridge, a seasoned securities attorney, to break down the key rules and regulations surrounding capital raising. This article expands on that conversation, offering a comprehensive guide for the Latino community in the U.S. interested in real estate investing and working safely with syndicators. If you’re looking to grow your wealth legally and effectively, keep reading.

What is Real Estate Syndication and How to Succeed in Real Estate Syndication: Expert Legal Advice & Investor Loans in Florida?

Real estate syndication happens when two or more people or companies come together to conduct a business transaction, like buying a property, pooling resources such as money and expertise. In the episode, Jean explains that this is common in commercial real estate, from warehouses to multifamily buildings. Think of going to the movies and seeing multiple companies produce a film together, or boarding a plane you don’t pilot yourself—that’s syndication at its core. For Latinos in the U.S., this strategy is a fantastic opportunity to participate in real estate investing without needing to be an expert or devote all your time.

Here’s the catch: not all syndications are the same, and many fall under securities laws. That’s why you need a securities attorney to guide you through capital raising, ensuring everything is legal and transparent. At Coso Cap, we offer investor loans like DSCR loans or rental property loans, perfect for those wanting to join a syndication and needing reliable financing.

The Critical Role of a Securities Attorney in Syndication

A securities attorney like Jean Trollbridge is essential for navigating the legal complexities of real estate syndication. Why? Because when there’s a manager or general partner in charge of the investment—as is typical in most syndications—it becomes a "security" under the law. This means you must comply with strict regulations to protect passive investors. Jean, with over 20 years of experience after being a syndicator himself, stresses that not just any attorney will do: you need someone specialized in securities, as many avoid this field due to insurance costs or firm restrictions.

In the podcast, Jean details that a security is when investors pool money into a common enterprise (like an LLC) expecting profits, and someone else is responsible for generating those profits. This is where the government steps in to safeguard passives, and a securities attorney ensures everything is done right, from drafting the private placement memorandum to preparing operating agreements.

Syndication vs. Crowdfunding: Clearing the Confusion

A topic that comes up often in our community is the difference between real estate syndication and crowdfunding. Jean clarifies: any project pooling money for a property is a syndication, but crowdfunding is just a small slice of securities laws, popularized by the JOBS Act of 2013. While "crowdfunding" sounds trendy and appealing, it’s essentially capital raising under specific rules. For example, platforms like GoFundMe are crowdfunding but unrelated to business; real estate crowdfunding, however, falls under securities laws and may limit you to raising just one million dollars if non-accredited investors are included.

For those eyeing bigger projects, traditional real estate syndication offers more flexibility, especially with options like Regulation D, which we’ll explore later. If you need financing to join in, CosoCap.com provides tailored solutions to get you started.

When Do You Need a Securities Attorney?

Not every group effort to invest is a security. Jean explains that a joint venture between, say, two friends making decisions together doesn’t require a securities attorney, as there’s no external manager. But if someone else runs the project—like a professional syndicator—it becomes a security, and the laws apply. Ignoring this can lead to serious consequences: fines, legal trouble, or even jail time, since securities laws are a criminal statute.

The process with a securities attorney starts with a fee agreement and an interview to understand your project. If it’s a security, they’ll draft documents like the private placement memorandum, operating agreement, and subscription booklet, ensuring investors have all the necessary information. Post-closing, they also file forms like Form D with the SEC and notices to states where investors reside.

Capital Raising Options: 506b, 506c, and Beyond

Jean breaks down the key capital raising options under Regulation D:

506b: The classic rule. You can raise unlimited amounts from accredited investors (with over a million dollars in net worth or high income) and up to 35 sophisticated ones, but no advertising is allowed. It requires pre-existing relationships with investors.
506c: Permits advertising, but only for accredited investors, with background checks. Ideal if you want to reach more people you don’t already know.
Crowdfunding (JOBS Act): Allows advertising to non-accredited investors, but caps at one million dollars, popular for small ventures like craft breweries.

For larger projects, there’s Regulation A+, which lets you raise up to $50 million annually, including non-accredited investors, but requires SEC approval and costs $75,000 to $100,000. Jean’s advice for new investors? Start with a specific offering (one asset), as it’s easier to raise money and less risky.

Common Mistakes in Real Estate Syndication

Jean highlights three mistakes syndicators must avoid:

Drafting documents yourself—a huge legal risk.
Not reading the documents you hire others to create.
Not giving yourself enough time to prepare.

For passive investors, key questions include: What happens if the manager passes away? Does the syndicator have experience? Are they investing their own money? These answers provide confidence in your real estate investing.

Keys to Success in Syndication

According to Jean, successful syndicators do three things:

Find a partner to ensure continuity, protecting investors.
Treat real estate syndication as a business with a fiduciary duty to investors.
Earn money alongside their investors, not before, ensuring a long, sustainable career.

How to Get Started Today

Real estate syndication is a powerful tool for the Latino community in the U.S. looking to build wealth. Contact a securities attorney like Jean at crowdfundinglawyers.net or explore financing options with us at Coso Cap by calling (407) 203-9599. We offer investor loans to help you join solid projects. Listen to Episode 7 and take your first step toward safe, profitable real estate investing.