A securities lawyer can help you a lot in processing the needed documents for a multifamily syndication. However, looking for the right attorney takes a lot more than just posting an ad through Facebook or asking a friend who knows someone with the right knowledge about real estate syndication.
First of all, investors will need to understand that a syndication is subject to securities laws. What are these laws and why are they important, you ask? Well, if you are planning to form a syndicate with multiple investors and purchase numerous apartments, this would mean you will be entitled to your own share of the profits from the properties you have acquired.
Because of the profit-sharing nature of this setup, you and your partners will need to abide by securities laws, which prevent the “shady” selling of stocks and other financial instruments. Each state has its own set of regulations; nonetheless, breaking these laws will put you at the receiving end of a complaint that’s difficult to dispute in court. Yikes!
While it’s true that gathering all the necessary paperwork for a syndication can be the most tedious and time-consuming process there is, investors and sponsors should still avoid risking their reputation for the sake of convenience.
This is the reason why securities lawyers are so important. They can help a syndication navigate the legal waters and prevent an avoidable disaster from happening. For this, it’s important to find a lawyer who already has a proven record in providing sound advice and preparing the documents you need to start rolling your syndication!
Here are some of the best tips to find the right legal expert.
Find a securities lawyer that’s committed to your needs
Lawyers have made it their mission to help their clients no matter what it takes. After all, they swore an oath to exercise due diligence when it comes to handling their clients’ needs. In other words, the best securities lawyers won’t fill out document templates, submit these forms, and leave your door with a big fat check in hand. They make sure you are also involved in the process so you know you are still in control.
Sadly, you can’t always trust your gut instincts when searching for possible candidates. Commitment is, after all, a difficult thing to gauge. Still, you can find the right legal expert to work with a syndication by following these essential tips for interviewing a candidate:
Ask about the duration of their practice
The length of a syndication attorney’s practice speaks volumes about their experience in the field. In this sense, it’s important to look for a firm or a legal expert that could pass off like a seasoned veteran.
Review previous clients
The best way to vouch for a law firm’s ability to meet your needs is to check the experiences of the clients it worked for in the past. When you are out looking for a highly capable law firm, the opinions of previous clients is essential to making the right choice. Aside from that, publicity is also a good way to check on a firm’s reputation. If a newspaper article mentions the firm in a bad light, then you might want to continue searching.
Know the cases they previously handled
Are you sure the lawyer is capable of handling all the necessary paperwork? Syndication laws are a totally different area, so you need to find someone who has the right set of skills to interpret these laws. If he or she was able to handle similar cases in the past, you need to know.
Get referrals from people you know
If you struggle with finding the right securities lawyer, you can begin your search by getting referrals from people who are close to you. Proceed with caution, though, since it’s not every time your friends or family members can make the best recommendations, especially when the task involves a ton of legal work. The best you can do is to get advice from business associates and partners on which law services to hire in your area.
Examine the personality
If you already have someone in mind that has the experience and knowledge you need for your syndication, then you’re all set to closing a lucrative deal for an apartment complex. Before that, you still need to ask yourself one more important question: are you comfortable working with your securities lawyer?
Having been an investor for many years now, I have shown people the importance of keeping a positive outlook. I also believe that happiness drives our passions, which allow us to work even harder to make other people happy. So, if your securities lawyer doesn’t have the same amount of positive energy as you do, it can lead to strains in the relationship you share. It’s important to examine a lawyer’s personality from the start. If he or she is readily accessible and responsive to your requests, then you know you are working with a true professional.
Securities laws are not that difficult if you find the right legal services for your syndication. I hope the list I have made can help you make the right decisions.