[Oxforddan]

I want to start syndicating on my deals more and more and I understand the basic risk associated with it such as a default. My concern is what happens to my money if regulation comes to town? Is there any recourse?

[ridextreme]

if regulation comes to town you would have to testify before Congress and you would have to find a very good lawyer.

[Oxforddan]

Why is that?

[Zach]

Regulation most likely won't be coming during a republican presidency.

[Oxforddan]

Zach I agree completely which is why I am stepping in on a more substantial level. Just figured I would reach out to experience so I maximize profitability and minimize mistakes.

[Oxforddan]

I also am somewhat leery of the fact that if the funder I syndicate through goes belly up I'm out everything. Who would you guys recommend?

[Sean Cash]

I also am somewhat leery of the fact that if the funder I syndicate through goes belly up I'm out everything. Who would you guys recommend?

There's way more risk than that. Some could just run off and steal the money, the funder's ACH processing relationship could be terminated, the funder's bank account could get frozen or they could be asked to leave the bank, you could potentially be a co-defendant in a lawsuit if the merchant sues, etc just to name a few.

Going belly up should be the least of your worries if you have a solid contract that protects you in that event. It's the things you're not paying attention to that are the problem.

[Sean Cash]

There's way more risk than that. Some could just run off and steal the money, the funder's ACH processing relationship could be terminated, the funder's bank account could get frozen or they could be asked to leave the bank, you could be potentially be a co-defendant in a lawsuit if the merchant sues, etc just to name a few.

Going belly up should be the least of your worries if you have a solid contract that protects you in that event. It's the things you're not paying attention to that are the problem.

And by the way, syndicates and ISOs have been named as co-defendants in lawsuits before for a variety of claims against a funder including for things like criminal usury. Funders have had their bank accounts closed and been terminated by their ACH processors. Happens all the time. Also, are you classified as an accredited investor? Funders should be asking you about that before accepting your money.

[Oxforddan]

I have done a bit through strategic which seems to be going well. Sean thank you for the reply. I guess it's time to have a lawyer relook through everything for me.

[staten]

There's way more risk than that. Some could just run off and steal the money, the funder's ACH processing relationship could be terminated, the funder's bank account could get frozen or they could be asked to leave the bank, you could be potentially be a co-defendant in a lawsuit if the merchant sues, etc just to name a few.

Going belly up should be the least of your worries if you have a solid contract that protects you in that event. It's the things you're not paying attention to that are the problem.

Yes, for instance, are they using your money to pay rent?

[Sean Cash]

I have done a bit through strategic which seems to be going well. Sean thank you for the reply. I guess it's time to have a lawyer relook through everything for me.

Short of outright endorsing strategic, at least they are huge, have been in the business for a long time and in many ways invented the syndication market for this industry. But yes, lawyers are a must.

[Michael I]

Haven't ISO been sued or at least written on as co defendants even if they did not syndicate . I don't think a merchant knows or cares if you syndicated when he names you on his lawsuit

[Eddie.deangelis]

Wow very interesting to say the least!

[fma123]

good points Sean...I would recommend syndicates to spread their risk among syndication platforms...Strategic has an awesome platform, love them...E-Prodigy also fantastic...I also use PSC...all great in their own right,...those are my top 3 hands down

[cardinalequity]

I want to start syndicating on my deals more and more and I understand the basic risk associated with it such as a default. My concern is what happens to my money if regulation comes to town? Is there any recourse?

Feel free to reach out to me and I'll give you the run down on the stuff no one really discusses.

Arty Bujan
Cardinal Equity, LLC
Managing Member
30 Wall Street 8Th FL
New York, NY 10005
Phone: 212-804-5757
Email: abujan@cardeqgroup.com
Web: www.cardeqgroup.com

[fma123]

I have heard good things about Cardinal Equity too, I recommend you do call Arty...

[mcaguru]

When syndicating regulations should be last of your worries! (even if Elizabeth Warren was in charge).

[NoBigDeal]

I have done a bit through strategic which seems to be going well. Sean thank you for the reply. I guess it's time to have a lawyer relook through everything for me.

I heard that Strategic has tightened up on their rules regarding syndication. You'd either have to go all in or nothing. No more 50/50 participation. Is that true?

[Karen37a]

Ive seen ISOs and individual Brokers get sued even if they didn't syndicate, because in the end the merchants don't know who is who and who did what.

When someone wants to sue they name everyone who put their fingers on it, or breathed near it.That's why when people say Iso's dont deserve a certain amount of money, I disagree.

[cardinalequity]

I have heard good things about Cardinal Equity too, I recommend you do call Arty...

Thank you!

[fundmcas]

are there any syndication platforms to be careful of? anyone have a bad experience? thank you in advance

[NoBigDeal]

are there any syndication platforms to be careful of? anyone have a bad experience? thank you in advance

Any funder can offer syndication. You should do some research to find out what the company's default rate is so you could have a general idea how your money will perform

[Michael I]

are there any syndication platforms to be careful of? anyone have a bad experience? thank you in advance

yes . pop up shops.People who have no underwriting.There are funders that ceo are criminals. you want to do your research

[fundmcas]

Any funder can offer syndication. You should do some research to find out what the company's default rate is so you could have a general idea how your money will perform

thank you. that is good advice. I had asked a question about FINRA registration in another thread but as far as I can tell for the most part most companies do not seek broker-dealer registration. default rates are absolutely something to review prior but I have other concerns such as what happens if the platform packs up one day and disappears? Has this ever happened with a platform? what kind of due diligence are syndicates doing on the platforms or what kind of contractual assurances or review would one recommend to feel safe to invest?

[fundmcas]

yes . pop up shops.People who have no underwriting.There are funders that ceo are criminals. you want to do your research

no criminals thank you. ha ha. there's a red flag if i've seen one!