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11-14-2016, 07:15 PM #1
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- Jul 2015
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- 215
risks of syndication?
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?
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11-14-2016, 07:33 PM #2
if regulation comes to town you would have to testify before Congress and you would have to find a very good lawyer.
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11-14-2016, 08:17 PM #3
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- Jul 2015
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risks of syndication?
Why is that?
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11-14-2016, 08:24 PM #4
Regulation most likely won't be coming during a republican presidency.
Zachary Ramirez CEO
Phone: 562-391-7099
Email: zach@zacharyjosephramirez.com
1661 N. Raymond Ave #265
Anaheim CA 92801
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11-14-2016, 09:10 PM #5
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- Jul 2015
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- 215
risks of syndication?
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.
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11-14-2016, 09:13 PM #6
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- Jul 2015
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- 215
risks of syndication?
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?
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11-14-2016, 09:42 PM #7
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.Last edited by Sean Cash; 11-14-2016 at 09:48 PM.
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11-14-2016, 09:46 PM #8
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.
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11-14-2016, 09:46 PM #9
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- Apr 2013
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- 117
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11-14-2016, 09:46 PM #10
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- Jul 2015
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- 215
risks of syndication?
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.
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11-14-2016, 09:50 PM #11
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11-15-2016, 02:12 PM #12
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- Mar 2016
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11-14-2016, 10:09 PM #13
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- Jun 2015
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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
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11-14-2016, 10:36 PM #14
- Join Date
- Mar 2014
- Posts
- 147
risks of syndication?
Wow very interesting to say the least!
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11-15-2016, 06:40 AM #15
risks of syndication?
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
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11-15-2016, 11:03 AM #16
- Join Date
- Nov 2014
- Posts
- 266
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
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11-15-2016, 12:53 PM #17
risks of syndication?
I have heard good things about Cardinal Equity too, I recommend you do call Arty...
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11-16-2016, 10:55 AM #18
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- Nov 2014
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- 266
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11-15-2016, 12:55 PM #19
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- Dec 2013
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When syndicating regulations should be last of your worries! (even if Elizabeth Warren was in charge).
Marcus Clapman | Business Development | Cresthill Capital
(High Commissions Payout Group)
Tel: 917-521-6528 | Fax: 212.671.1473
Email: bizdev@cresthillcapital.com
http://www.cresthillcapital.com
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11-15-2016, 09:34 PM #20Karen37aGuest
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.Last edited by Karen37a; 11-16-2016 at 08:03 AM.
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01-09-2017, 02:54 PM #21
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- Jan 2017
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- 22
are there any syndication platforms to be careful of? anyone have a bad experience? thank you in advance
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01-09-2017, 02:59 PM #22
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- Mar 2016
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01-09-2017, 03:05 PM #23
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- Jan 2017
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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?
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01-09-2017, 03:19 PM #24
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- Mar 2016
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- 657
Look into the company that's offering the platform. ask what kind of marketing material they could provide to show their syndication product. DEFINITELY read the syndication contract and have an attorney look it over to make sure it's something you're comfortable "getting into bed with"
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01-09-2017, 05:03 PM #25
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- Apr 2013
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- 117
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