How to Syndicate an Apartment Deal in Colorado: A Sponsor Guide
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To syndicate an apartment deal in Colorado, you form the deal LLC (or register an outside LLC with the Colorado Secretary of State), raise under Rule 506(b) or 506(c), and file a Form D notice with a $50 fee through NASAA's EFD, generally within 15 days of your first Colorado sale. Colorado has the lowest paid notice fee in this series, and then adds tenant statutes with deposit and habitability rules and a property tax reassessment every odd numbered year.
This is the Colorado version of our general syndication guide. It covers what changes when the building, the investors or both are in Colorado. It is general information, not legal advice.
What is the Colorado Rule 506 notice filing?
Colorado treats Rule 506 interests as federal covered securities and wants a notice. You file the SEC Form D copy and the fee through the NASAA Electronic Filing Depository (EFD) for the Colorado Division of Securities. DoorRaise's state data, from NASAA's fee schedule, lists the fee as $50, with no separate late fee listed. The common state deadline is 15 calendar days after the first sale in the state. EFD shows the exact amount before you pay, and that amount wins. See blue sky notice filings and blue sky fees by state.
How do you form the deal LLC in Colorado?
A Colorado LLC is formed by filing Articles of Organization with the Secretary of State; the published fee is $50. An LLC formed elsewhere that will own Colorado property files a Statement of Foreign Entity Authority, published at $100. Colorado LLCs file a periodic report each year, published at $25, and a missed report can lead to delinquency. Confirm fees on the Secretary of State fee schedule before you file. See forming an LLC for a syndication and foreign qualification in the property state.
What Colorado landlord and tenant rules should a sponsor know?
Colorado's residential rules are in C.R.S. Title 38, Article 12. A security deposit is capped at two months' rent (38-12-102.5) and, since January 1, 2026 (HB25-1249), must be returned within 30 days after the lease ends, or up to 60 days if the lease says so (38-12-103). Colorado has a statutory warranty of habitability (38-12-503 and following), so a landlord must keep units fit to live in, and a tenant can pursue remedies if not. For nonpayment, a landlord serves a written demand for payment or possession that gives the tenant 10 days to pay before an eviction can be filed (13-40-104). Colorado also bars local rent control (38-12-301). See rent control laws for apartment investors.
How does Colorado property tax work when an apartment building sells?
Colorado assessors reappraise all property every two years, in odd numbered years, using sales and income data from a defined period before the valuation date. Apartment buildings are classified as residential property for assessment, so the residential assessment rate applies. A sale does not trigger an immediate reappraisal, but a price inside the data period is evidence at the next one. Assessment rates and caps have changed several times in recent sessions, so ask the county assessor for the current rate and the building's current actual value before you underwrite. Protest deadlines are short and run from the notice of valuation. See property tax reassessment in apartment underwriting and appealing property tax on an apartment building.
Does Colorado tax the deal LLC or its investors?
Colorado taxes income earned in the state, so a nonresident investor's share of the LLC's Colorado income may require a Colorado return, and a pass through entity may have to withhold or file a composite. Ask your CPA early; the investor side is in state tax returns for nonresident syndication investors.
How DoorRaise fits in
DoorRaise helps sponsors raise equity for apartment buildings from their friends and followers under Rule 506(b) or 506(c), with verified accredited investors only. Investors fund by wire into escrow. By default DoorRaise files the property's state notice; on new deals, the first investor from another state pays that state's filing fee by card when they sign, and later investors from that state pay nothing. See pricing or how it works.
FAQ
How much is the Colorado Rule 506 notice fee?
$50, per NASAA's fee schedule. EFD shows the final amount before you pay.
When is the Colorado notice due?
Generally 15 calendar days after the first sale to a Colorado investor. One filing covers the offering.
What is the maximum security deposit in Colorado?
Two months' rent.
How often does Colorado reappraise property?
Every two years, in odd numbered years.
Sources
- Colorado Division of Securities
- NASAA: Form D fee schedule
- Colorado Secretary of State: business filings
- Colorado Revised Statutes, Title 38, Article 12
- Colorado Division of Real Estate: HB25-1249 summary
- Colorado Division of Property Taxation
This article is general information as of November 2026, not legal, tax or investment advice. State laws and fees change: confirm with the state agency and your own attorney before you file. DoorRaise is not a law firm, broker-dealer, investment adviser or funding portal.