b'4. Choose Your Syndication Modelsibly succeed. Using investor funds at that point puts investor funds at the greatest risk of being lost.Minimum-Maximum OfferingIn a minimum-maximum raise, you will establish a minimum dollar amount that must be raised before any investor funds can be used. The point at which you begin to use investor funds is called breaking impounds. If you dont raise the minimum dollar amount, then you cant break im-pounds and you would be obligated to give the money back to investors without deduction. Your alternative would be to get their permission to lower the minimum dollar amount and use their funds. The less you raise, the less likely your company is to be successful, so sometimes the right thing to do is to give the money back without deduction. The maximum dollar amount should be the amount you would like to raise plus a cushion of 10%-20% of the raise amount that will allow you to raise some additional funds if necessarysuch as a shortfall, discovery of unexpected expense items, or higher costs than you anticipated. This is the most common type of raise that our law firms clients use.In an open-ended raise, there is no maximum dollar amount established and there may or may not be a minimum dollar amount. PHASES OF A SYNDICATION A typical syndication has three phases and an established program or waterfall for paying its investors. Below are some examples of a syndica-tors duties in the various phases of a typical syndication, although there are many variations depending on what you are syndicating. Waterfalls in a syndication can be quite simple or very complex. We will cover simple waterfalls here, since that is where most beginning syndicators will start.Acquisition PhaseIn the acquisition phase, you will:Identify a suitable property, business or productPerform real estate financial and physical due diligence, or market research and feasibility studies if the subject investment is a busi-ness or productForm a legal entity that will take title to the asset 31'