Mon, 9 March 2020
If you’re looking to scale your efforts at raising capital with an online platform, you may be curious what you can and cannot do to market your business. What exemptions do you need to file in order to legally advertise a multifamily offering? How do you build the ‘preexisting and substantive’ relationship with investors the SEC requires for the 506(b) when you’re connecting online?
Gene Trowbridge is the managing partner of Trowbridge Sidoti LLP, a California law firm that specializes in real estate syndications and crowdfunding. Gene has extensive experience in commercial real estate investment, and in the last six years, his firm has authorized securities offering documents for more than $1.5B of equity raised. He is also the author of It’s a Whole New Business, the definitive book on securities for multifamily investors.
On this episode of Apartment Building Investing, Gene joins me to discuss the two methods for legally advertising a real estate syndication (online or otherwise), the Reg A and 506(c). He explains why the 506(b) is more popular than the 506(c) and offers advice on proving a preexisting and substantive relationship with investors per the rules of the 506(b). Listen in for Gene’s insight on doing a 1031 Exchange in a syndication and learn how to leverage the tenant in common agreement to bring on new investors.
The two ways to legally advertise a real estate syndication
What syndicators need to know about the Reg A
Why more investors don’t do a 506(c)
The SEC rules around the 506(b)
What it means to have a substantive + preexisting relationship
Gene’s advice on proving a preexisting relationship
How to work with an investor with 1031 Exchange money
What to do when some of your LPs want their money from a sale
How to bring on new investors in a 1031 Exchange project
Connect with Gene Trowbridge