Syndicates / Property Clubs - Development/Renovation Syndicate

How do you get your cash out of a syndicate if your cicumstances change.

This could be an area of contention and needs very careful thought and concensus. A buy to let syndicate would have to make special provision for the release of funds if requested. This could be messy legally speaking.

An alternative is the quicker turnaround that a redevelopment syndicate would have. Buy in for a given period, namely the duration of the rebuild and take your profit on sale or disposal of the property.

Following on from that we could have a pool of potential investors able to select the particular redevelopment they want to invest in. For example if say 50 investors joined together then any number could opt in or not as their personal circumstace allowed.

I would suggest a small registration fee to cover legals, deposits etc, say 1000 and a non refundable monthly subscription of 25 pounds to remain a syndicate member.

What happens to this 25 quid per month?

Firstly I see the monthly fee as a membership subscription. Only those who are current to take part in any deal.

A variety of costs that have to be met come to mind. Bank account fees, accountancy, post, etc

Right, ok, but what if all of the money is not used? How would it be paid? Direct debit? Send off a cheque every month?

The most convenient is standing order. I would also see the cash being used to supplement any property purchase, legals, deposit etc.

One additional thought is that shareholders/subscribers may need to inject more cash for a specific project. Say we have 50 members and only 30 want to take up the project. Deposit and upfront fees say 40k. The 30 members have contributed 30k in joining fees but for the project to start each would have to find an extra 333.33. The alternative is use the non contributing members cash and repay this on completion before the participating members take their profit.

I would say that this is unlikey and all should participate in each project.

Hi guys,

A quick update.

Our Networking Evening will now take place in OCTOBER, rather than Monday 19th September. Apologies to those who have already booked it in, but we have been forced to change the date.

Please note that the property syndicate 'gathering' will remain integrated into the networking evening.

We will update all LT users by email when we have fixed another date for this event.

Best regards,

Dan Landlord Trader