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Podcast: Syndication Law & The Private Placement Memorandum Attorney
Episode: Can You Get a Bank Loan?: Leveraging Traditional Financing in Syndication
Description: The discussion is centered around the feasibility of obtaining a traditional bank loan while concurrently raising equity from investors for a syndication or fund, particularly in real estate. The answer is affirmative, but there are key considerations that require careful management.Firstly, potential investors need to be aware that the bank, as the primary lender, is paid back before equity investors. Thus, this financing information must be transparently disclosed to all involved.Secondly, lenders typically require a guarantor, irrespective of whether it's a non-recourse loan or a traditional recourse loan. In the event of a...