Securities offering documentation

When it comes to investing in an apartment building syndication, you will have to review a number of documents including but not limited to executive summary, private placement memorandum, subscription agreement, operating agreement, and several others.

Let’s cover each of them separately:

1. An Executive Summary is a document that covers the investment itself; it details the location, the description of the building, and offers basic current income and expenses data. It also details the projected returns,  and offers a comparison with other compatible buildings in the area. In layman terms, the Executive Summary helps you understand what are you getting yourself into.

   2. A Private Placement Memorandum is a document that states all of the information an investor needs to know in order to make an informed decision about investing in an Regulation D offering.

   3. A Subscription Agreement is an agreement by a company to sell a certain number of shares in a company at a specific price per share, and an agreement by an investor to buy certain number of shares in a company.

   4. An Operating Agreement is a legal document that outlines the ownership and member duties of your Limited Liability Company.

For additional details on s Securities Offering documentation please refer to this securities legal documents page.

References:

What’s in a Securities Offering? By Syndication Attorneys (Kim Lisa Taylor)

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