Where can I launch Fund Builder?
If you are new to Verivest, you can launch Fund Builder by clicking “Get started” on our landing page. This button will initiate the process of setting up your new investment opportunity. It's that easy!
If you are an existing customer and looking to create a new investment opportunity using Fund Builder, the process is simple. All you need to do is access your home page and locate the "Get Started" button. Clicking on this button will initiate the process of setting up your new investment opportunity.
Fund Builder Overview video
The following video provides a brief preview of what to expect and the experience you will have when creating a fund via Fund Builder. As shown, Fund Builder offers a wide range of features and tools to help tailor a fund to your needs.
Start
Setting up a real estate syndication can be a daunting process. However, with our service, you can rest easy knowing that we take care of the heavy lifting. Our goal is to help you create your own real estate investment syndication with ease.
We provide all the necessary tools to guide you through the process, step-by-step, so you can be sure everything is done properly. Our platform allows you to access all the required legal documents and onboard investors without any hassle. Additionally, we provide back-office support to ensure that everything runs smoothly.
What to expect:
A few brief questions about your experience.
A few brief questions about what you would like to achieve with your fund or syndication.
Asset
The heart of every syndication is the real estate asset that will be acquired. In this section, you will provide investors with the information they need to understand the type of real estate your syndication will acquire. This includes its location, anticipated acquisition date and price, targeted disposition price, and a basic high-level strategy for generating returns for investors. By providing this information, you will instill confidence in potential investors and set your syndication up for success.
To complete this section, you will need:
Asset address
Anticipated acquisition date and price
Targeted disposition price
A basic high-level strategy for generating returns for investors.
Opportunity
Investors are always looking for a great deal, so it's important to provide as much information as possible to ensure they see the value in your investment opportunity. In addition to the details you've already provided about the strategy and potential returns, consider including more in-depth information about the opportunity that makes this investment a great option. Providing additional background information about the syndication team, their experience, and track record can instill confidence in potential investors.
To complete this section, you will need:
A name for your investment opportunity
The type of offering you will be making (506b or 506c)
The hold period and anticipated disposition date and price
Targeted IRR and equity multiple
An Executive Summary of the investment opportunity
A Business Strategy summary
Manager and key team member Bios
Distributions
The Distribution section captures data on the fees that you and any of your affiliates will earn for acquiring, operating, and disposing of the asset. It also explains the waterfall used to allocate and distribute profits between you as the manager and your investors.
To complete this section, you will need:
To determine the fees that will be charged and to whom they will be paid
To choose a waterfall (distribution) that will be used to allocate cash proceeds from the investment to the manager and investors
Entities
The organizational structure of your investment opportunity is the foundation upon which you can build a syndication. Here, you will select the entities that need to be formed to operate your investment opportunity. In order to build this structure, you will first need to identify the key entities that need to be formed to operate your investment opportunity. This could include forming a general partner, a limited partner, or a management company. Additionally, you will need to determine how these entities will be structured and the roles and responsibilities of each entity.
By taking the time to carefully consider and plan your organizational structure, you can ensure that your investment opportunity is set up for success.
To complete this section, you will need to:
Provide information about your current Management (R/E Operations) entity or decide whether you would like to create one
Provide names for the Investor and Property Owner entities to be created
Provide the contact info for your investor relations contact
Payment
To launch and manage your syndication, it is important to review the various options and services available. Once this is done, you can set up your syndication and start raising funds by providing your payment information.
To complete this section, you will need to:
Review and select the services you need
Agree to our Terms of Service
Provide payment to launch your investment opportunity
Additional Important information about your new syndication
Fund Administration Services:
Your fund builder plan includes administration of the investor entity only. If you would like us to administer your manager (GP) entity as well, please contact support@verivest.com after making your payment.
We offer this service for a small additional fee, but most managers prefer to handle it themselves. Financial accounts for the property entity are typically prepared by your bookkeeper or property manager. If you are unsure of how to handle this, we can recommend a provider for you.
Blue Sky Form Filings:
Each state has its own set of securities laws that safeguard investors against securities fraud. Verivest is responsible for creating and filing a blue sky form when an investor commits. Depending on the state, fees will be charged at the time of filing.
Onboarding
Once you have completed the information gathering steps of the Fund Builder, our Onboarding Team will assist you withe next steps in forming your opportunity and prepare for fundraising.
At this step, you will see a list of items that we will complete for you, along with a list of final items that you need to complete.
The following items need to be completed by you:
EIN registration: To register for an EIN, visit the IRS website and complete the online application. You will need to provide basic information about your business, such as the name and address, and the reason for applying for an EIN. Once you submit the application, you will receive your EIN immediately.
Please note, you should wait for the go ahead from our Onboarding Team before you apply for an EIN. We will want to ensure your entity is properly formed with Delaware before you submit.
Signing operating agreements: Operating agreements are legal agreements that outline the terms and conditions of investing in a fund. These documents typically include information about the investment strategy, the fees and expenses associated with investing, and the rights and responsibilities of the investors and the fund manager.
Opening bank accounts: To ensure that all funds are properly accounted for and tracked, and to comply with standard corporate formalities, it is necessary to open a bank account for each entity involved in a real estate syndication. This allows for easier tracking of cash transactions and reduces the cost of fund administration and tax reporting.
Here are some details about what our team will be doing to help you achieve your goal:
Forming the entities: We'll be working hard to create the entities that will be used in your syndication. This includes drafting the necessary documents and filing them with the appropriate government agencies. All entities will be formed in Delaware with the assistance of a Registered Agent.
Registering the entities: Once the entities have been formed, we'll take care of registering them to do business in the necessary jurisdictions.
Filing the Form D: Our team will prepare all the necessary SEC filing documents for your syndication.
Where can I find the opportunity built via Fund Builder?
Once all parties have completed their respective tasks, you will be able to access the opportunity from the "Opportunities" tab located in your manager dashboard. This will allow you to view and edit the opportunity as needed.
Rest assured that we're here to guide you every step of the way. If you have any questions or concerns, please don't hesitate to reach out to us.