Politics, Investment Funds, and Syndications: Staying Neutral Publicly in an Election Year

The importance of keeping political views private when dealing with investors in syndication. Maintaining neutrality can help build trust and prevent alienating potential investors. To get started with your syndication or fund visit https://www.moschettilaw.com.

In the realm of real estate syndication, managing investor relations is paramount, and one's political views can inadvertently affect these relationships. Political discussions can be highly polarizing, and when engaging with potential investors, it is advisable to maintain a neutral stance. This approach is particularly crucial during election years, where emotions and opinions about political candidates and policies run high.

Maintaining professionalism and avoiding political discourse ensures that investors focus on the merits of the investment opportunity rather than getting distracted by differing political opinions. Investors often seek assurance that their syndicator is someone they can trust and rely on, regardless of personal beliefs. Trust is the cornerstone of any successful investment relationship. Displaying strong political views, especially on public platforms like LinkedIn or Facebook, can alienate half of your potential investors who may hold opposing views.

For real estate syndicators, the key is to create an inclusive environment where the focus remains on the investment's value and potential returns. By steering clear of political discussions, syndicators can prevent unnecessary conflicts and build a broader investor base. This inclusive strategy aligns with the primary goal of real estate syndication: to attract and retain investors who believe in the project's potential and the syndicator's capability to deliver.

In essence, while personal political views may be strong and well-defined, they should remain private when dealing with investors. The goal is to create a welcoming atmosphere for all potential investors, irrespective of their political affiliations. By doing so, syndicators can ensure that their investment opportunities are judged solely on their financial merits, leading to more successful and harmonious investment ventures.

Read more about Reg D - What is Reg D? The King of Securities Exceptions: https://www.moschettilaw.com/reg-d/

Read more about PPMs - What Is In A Private Placement Memorandum?: https://www.moschettilaw.com/private-placement-memorandum-attorney/

Moschetti Syndication Law Group is a boutique syndication law firm, serving small and growth-bound syndicators, as well as private equity firms. Our attorney, Tilden Moschetti, is determined to keep the firm’s ‘boutique’ size so we can tailor the services to each client’s unique needs without turning the firm into a faceless factory churning out private placement memorandums or passing unnecessary overhead expenses onto our clients. (As our client, you’ll only pay a fixed fee, so no surprises.) As for the client experience, we give real-time answers with Tilden Moschetti without making you book an official appointment or get passed along to associates or paralegals. We’ll work with your ambitions and overall vision to help you close the current deal and fill in that ‘missing’ piece – whatever you need – to keep adding more syndications to your portfolio. We keep syndicators syndicating (TM).

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Episode Transcript

Tilden Moschetti (00:00):
You're gathered around the watercooler

(00:01):
and you're talking politics, yougo back to your office to get on
the phone, you've got strongemotions, strong feelings about
who should win, especially in anelection year, like the one
we're in, you've got thosestrong emotions you get on the
phone with an investor who hasviews different than yours. What
exactly do you do? What stanceAre you going to take? Let's

(00:26):
talk about
that those who know me know thatI am a golf fanatic. I love it.
My kids play golf there intournaments. Really, I'm mostly
a caddy at this point, but Ilove it. So when I ran across

(00:49):
this quote from great golfer,Justin Thomas, I thought I would
share it with you. And he said,it doesn't matter what my
political views who I like orwho I dislike, if a president
ever asks me to do anything, I'mgonna say yes. And that is
exactly the political views thatyou should have on a public
face. Now, I've seen time andtime again, of people posting on

(01:14):
LinkedIn, or some or Facebook orsomething like that, their
strong political views. Now,while strong political views
definitely have a place, you gotto remember, you're in the job
of sales many times when you aredoing when you're doing a
syndication when you're doing aninvestment fund. You want people
to invest with you. People arevery, very emotional about

(01:38):
politics, I don't need to tellyou that even outside of an
election year, about 50% ofAmericans, According to a Gallup
poll, said that they care deeplyabout politics and follow it
closely. 50%. That means, oneout of every other person that
you talk to, that you'repitching follows politics and

(01:59):
probably has strong politicalviews. Now, it doesn't matter,
really what their politicalviews are, unless it does, if it
matters greatly to you thatyou're putting a fund together
of people who are like mindedinvestors in order to do a
thing, then great. That's yourthing. But in general, you're
looking for a wide market with alot of investors. What I would

(02:24):
recommend to you is do not talkabout politics. Politics is the
death knell. If somebody came upto you and said, Well, I've got
these views of SEC XYZ, and youstart arguing with them, do you
think you're gonna be able topersuade them to invest in your
fund? No, these are people whoare coming to you because they

(02:44):
know you, they like you, theytrust you. Most important thing
is trust, if they can't trustyou with their political views,
and not to be, you know, can'ttrust that you're going to be
taking an opposite side, they'renot going to invest with you,
they'll go with someone else.Best way to avoid it, is you
just don't talk about it. If itcomes up, and trust me, for me,

(03:06):
it comes up a fair amount, thenyou basically adapt, right? I
always listen to what they'resaying. I always acknowledge
what they're saying. And then Ikeep my own counsel, when it
comes to my political views. NowI have incredibly strong vith
political views. All of myfriends know it. They know what

(03:27):
my political views are. They'revery strong. Right? They may be
one side or the other. I'm notgoing to disclose that here.
Why? Because I want you to be myclient. Right? And that's what
you should be doing as well, isnot espousing it. If you're
posting on LinkedIn, onFacebook, all these views that
you have, you're taking awayyour potential client base. Now

(03:51):
point of fact. So here it'sforbids disclosed. In early in
my career as a lawyer, I workfor Kamla Harris. Currently, she
is the Vice President of theUnited States. People have very
strong feelings one way oranother about Pamela. Here. I'm
not going to talk about thatother than the fact that I
worked for Kamala Harris. Shewas my boss, I saw her, you

(04:14):
know, frequently I was inmeetings with her. Does that
make anything special about me?As far as it relates to politics
now, I don't think she's goingto call me call me up on the
phone and appoint me as head ofthe SEC, or appoint me is or get
me appointed as a Supreme Courtjustice. It's not likely. Does
she know who I am? No, shedoesn't have any clue that she

(04:37):
would she recognize me? I doubtit seriously. It was a very
short time, but she was my boss.Right? And that's just kind of
interesting. And that's why Ishare it here. It's interesting.
And notice the way that Iresponded about it right? You
still have no idea how I feelabout Kamala Harris. And that's
the way your clients should beto, they shouldn't care about

(04:58):
whether you care about her orTrump or Biden or whoever, it
doesn't matter. At the end ofthe day, there is going to be an
election in November, and one ofthe parties is going to win. And
the result of that is going tohave some implications on taxes

(05:18):
and how the securities industryis run and things like that, it
will have some effect isRegulation D going away?
Absolutely not, not under eitherparty, both parties want this
system to continue. It bringsmoney out of the pockets of
people who want to invest andmakes them more money, which

(05:40):
makes them more entrenched inour society, which we like,
Regulation D is going nowhere,from the strongest liberal to
the strongest conservative, theyboth want Regulation D to exist.
I would wager that both thestrongest liberal and the
strongest conservative, alsodon't want grandma to get

(06:01):
screwed out of out of all of hersavings by somebody who's acting
unscrupulous. So there's goingto continue to be regulation
regardless, it's not going to besuper heavy, maybe on one party
versus another, maybe it'll bemore, maybe taxes will go up,
maybe it will go down. But youknow what, at the end of the
day, the world keeps spinning.And we're still here. And that's

(06:26):
the attitude that you need tohave in your private life, talk
politics, all you want in yourpublic life, I would encourage
you to not talk politics, unlessit is something that is
absolutely important to the fundthat you're trying to do. If it
serves your purpose, then great,do it. But do not go in with the

(06:48):
mindset that espousing yourpolitical views for one party or
another is going to get you moreclients because you can't you're
a marketing gurus talk about,well, you should always be
polarizing and things like thisdo not polarize around politics.
It's not going to help youpolarize about your offer, throw
stones at the other side, thosethings are all good. Talk about

(07:12):
politics. My word of advice isdon't do it. So this is Tilden
Moschetti. I'm a syndicationattorney and a devout See,
wasn't going to tell you anyway.So if you if you think I can
help you, with your Regulation Doffer whether it's under Rule
506 B or 506. C, I'd be happy tohelp you. Whether you're that

(07:36):
strong liberal or that strong,conservative widow we don't mind
working with either and we'rehappy to listen with you. Listen
to help you work out the bestdeal for you. Because at the end
of the day, I believe inAmerica, I believe in our system
of government, and I believethat you probably do too.