How to Syndicate an Apartment Deal in New York

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What is the New York Rule 506 notice filing?
How do you form the deal LLC in New York?
What New York landlord and tenant rules should a sponsor know?
What does New York charge when an apartment building sells?
How does New York property tax work for an apartment building?
Does New York tax the deal LLC or its investors?
How DoorRaise fits in
FAQ

To syndicate an apartment deal in New York, you form the deal LLC (or register an outside LLC) and complete New York's publication step, raise under Rule 506(b) or 506(c), and file a Form D notice with the Attorney General's Investor Protection Bureau through NASAA's EFD. DoorRaise's state data lists $300 for an offering up to $500,000 and $1,200 above that. The biggest underwriting question is usually whether any unit is rent regulated.

This is the New York version of our general syndication guide. It covers what changes when the building, the investors or both are in New York. For the notice alone, see the New York Rule 506 notice filing. It is general information, not legal advice.

What is the New York Rule 506 notice filing?

New York treats Rule 506 interests as federal covered securities and takes a notice filing through the NASAA Electronic Filing Depository (EFD) for the Attorney General's Investor Protection Bureau. DoorRaise's state data lists the fee as $300 for an offering up to $500,000 and $1,200 above, and notes that New York also wants each Form D amendment filed with it and a renewal every four years. EFD shows the exact amount before you pay, and that amount wins. See the New York Rule 506 notice filing and blue sky fees by state.

How do you form the deal LLC in New York?

A New York LLC is formed by filing Articles of Organization with the Department of State. New York then requires the LLC to publish a notice of its formation in two newspapers in the county of its office for six weeks and file a Certificate of Publication, with a filing fee set by the state; newspaper costs vary a lot by county and are often the larger bill. Every two years the LLC files a biennial statement, which carries a $9 fee in the guides we found. A foreign LLC that will own New York property registers and publishes too. Confirm the rules with the Department of State. See forming an LLC for a syndication and foreign qualification in the property state.

Since the Housing Stability and Tenant Protection Act of 2019, a New York landlord may not take a security deposit above one month's rent, and must return it with an itemized statement within 14 days after the tenant leaves. Late fees are limited and evictions need the notices and court steps the act sets. Separately, rent stabilization covers most buildings with six or more units built before 1974 in New York City and in other towns that opted in, and rent-regulated units limit how much you can raise rent. Ask your lawyer, and request the building's registration history, before you underwrite any rent growth. For a wider view, see rent control laws for apartment investors.

What does New York charge when an apartment building sells?

New York State charges a real estate transfer tax of $2 per $500 of the price, usually paid by the seller. New York City adds its own transfer taxes, and some other localities charge theirs, and a mortgage recording tax applies when the lender records the loan. Get the exact figures from your title company and put them in sources and uses.

How does New York property tax work for an apartment building?

Local assessors set the assessed value, and rates differ by county, city and school district; New York City values rental buildings from their income and applies a class rate. A sale can lead to a challenge of the assessment, and owners can file grievances on set dates. In New York City, buildings above 25,000 square feet also face emissions limits under Local Law 97, which can add capital cost. Underwrite taxes from the current bill and your purchase price. See property tax reassessment in apartment underwriting.

Does New York tax the deal LLC or its investors?

New York taxes income earned in the state, and nonresident partners may owe New York tax or be covered by withholding or a composite return. New York City adds its own taxes on some entities. 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), and verifies that every investor is accredited before they sign. Investors fund by wire into the deal's escrow account at Enterprise Bank & Trust. By default DoorRaise files the notice in the property's state; on new deals, the first investor from another state pays that state's filing fee by card when they sign, later investors from that state pay nothing, and the sponsor never fronts it. Sponsors pay a $1,500 setup fee (non-refundable) and a flat $5,000 a year administration fee; see pricing or how it works.

FAQ

How much is the New York Rule 506 notice fee?

$300 for an offering up to $500,000 and $1,200 above, per DoorRaise's state data. EFD shows the final amount before you pay.

Does a New York LLC have to publish?

Yes, notice of formation in two newspapers for six weeks, then a Certificate of Publication.

How much can a New York landlord take as a security deposit?

One month's rent.

What is the New York State transfer tax?

$2 per $500 of the price, usually paid by the seller, with local taxes added in some places.

Sources

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.