b'2. Set the Stage for Successrelationships with brand new investors because your previous investors will only be interested in another screaming deal like the first one. You will have done a disservice to them, because they are now sitting on the sidelines waiting for the next gold strike that may never come. Its not fair to yourself either, because your hard work in developing those initial relationships could be lost. If you find a fantastic deal that results in a windfall for you, giving a little extra to investors as a bonus for helping you become a smashing success may actually entice investors to invest with you again. Such a bonus should be discretionary, not a promise.Take a look at the SECs website or that of your state securities regulator. You likely will see something explaining how investors can protect them-selves from fraudsters, along with some red flags they should watch out for. These articles cite offers of high returns as potentially fraudulent or Ponzi schemes. Weve actually had clients come back and ask us to lower the returns they are offering to investors because no one believed their projections and they couldnt get anyone to invest. Regulators tend to see anything offering a return of more than 12% as potentially fraudulent, thanks to Bernie Madoff. Thats what he offered. Your business model should allow you to offer reasonable returns to your investors that beat stock market averages for them and still make a reasonable profit for yourself. Thats exactly how syndication is supposed to work. Your goal should be to develop investors for life, who trust and believe in you, who will invest with you again and again, and who will refer you to their friends and family. The way to do that is to take the time to get to know your investors personally first (as in a dating relationship), and then offer investment opportunities that deliver exactly what you promisedor more. Your mantra should be to under-promise and over-deliver, and to de-velop investors for life. Never over-promise and under-deliver, or you may find yourself back as a bartender sooner than you think!Never forget that you must be compensated for your time and efforts in making the investment opportunity available for investors, managing the company, and managing their funds. Your compensation will generally come in the form of fees for active management of the company and in the form of ownership interests that carry rights to a share of profits (such 11'