Funding a PPM

We have a $10 million PPM that needs to be funded. The investors that have invested with us have realized anywhere from a 10%-12% return depending on the amount and term. This message is not a specific offering so if you are interested in learning about the industry and our business as it relates to the industry then please call Shaun at [PHONE NUMBER REMOVED]or email at [EMAIL REMOVED].

Edited: 06/26/2010 at 09:33AM by Moderator : contact info must be in signature, which will appear after 10 posts

Jon Holdman

Real Estate Investor · Denver, Colorado

11859 posts
75527 Influence
15 Awards

Icon_minipost Aug 30 '09, 11:46 PM

Is this public offering registered with the SEC and all 50 states?

Edited: 06/26/2010 at 09:33AM

Jon Holdman, Flying Phoenix LLC

Shaun Cohen

Real Estate Investor · Marco Island, Florida

5 posts
28 Influence

Icon_minipost Aug 30 '09, 11:55 PM

It is registered with the SEC and I was informed by my attorney that we only have to register in a state when we are ready to accept an investment from someone in that state. So, we will absolutely register in whatever state is necessary when the time comes.

Edited: 06/26/2010 at 09:33AM

James Ward

Real Estate Investor · Ocala, Florida

748 posts
19653 Influence
18 Awards

Icon_minipost Aug 31 '09, 03:03 AM

I have a few questions.
1) I would like to see the private participation operating agreement.
2) I would like the name of the fund.
3) How much funding has the program all ready acquired?
4) What is your position?
5) What is the experience of the "manager"?

Thanks,
James

Edited: 06/26/2010 at 09:33AM

Jon Holdman

Real Estate Investor · Denver, Colorado

11859 posts
75527 Influence
15 Awards

Icon_minipost Aug 31 '09, 03:12 AM

Registered as a public offering? Or, just a private placement (i.e, Reg D filing)? Because posting it here like this makes it a public offering.

Edited: 06/26/2010 at 09:33AM

Jon Holdman, Flying Phoenix LLC

James Hiddle

Real Estate Investor · Altus, Oklahoma

2515 posts
9267 Influence
7 Awards

Icon_minipost Aug 31 '09, 05:24 AM

I get very leery about things about this. With the multiple ponzi schemes going around I just don't trust offers like this.

Not saying this is a ponzi scheme but making a public offering like this will send red lights across the board.

Edited: 06/26/2010 at 09:33AM

Shaun Cohen

Real Estate Investor · Marco Island, Florida

5 posts
28 Influence

Icon_minipost Aug 31 '09, 05:35 AM

Clearly we're looking for funding and my posting was the result of misinterpreting our registration attorney's counsel on how to get the information out. Any suggestions you have would be welcome.

Edited: 06/26/2010 at 09:33AM

Jon Holdman

Real Estate Investor · Denver, Colorado

11859 posts
75527 Influence
15 Awards

Icon_minipost Aug 31 '09, 07:03 AM

Assuming this is a reg D offering, you can only ask for investments from people that you already have an existing relationship with. So, approach everyone you know. And get to know as many people as you can.

Edited: 06/26/2010 at 09:33AM

Jon Holdman, Flying Phoenix LLC

Anthony E Russell

Real Estate Investor · Los Angeles, California

141 posts
806 Influence
1 Award

Icon_minipost Aug 31 '09, 09:25 AM

Originally posted by Jon Holdman

Assuming this is a reg D offering, you can only ask for investments from people that you already have an existing relationship with. So, approach everyone you know.

Jon,

Right on about that.

Anthony

Edited: 06/26/2010 at 09:33AM

Kevin Yeats

Real Estate Lender · Fort Pierce, Florida

535 posts
5069 Influence
6 Awards

Icon_minipost Aug 31 '09, 10:06 AM

Shaun, you really need to have a much more in-depth discussion with your lawyer about who and how to find investors.

Edited: 06/26/2010 at 09:33AM

Shaun Cohen

Real Estate Investor · Marco Island, Florida

5 posts
28 Influence

Icon_minipost Aug 31 '09, 10:30 PM

Thanks everyone. I think I'm pretty crystal clear about this now and will have a pow-wow with my attorney. Thanks again for the advice.

Edited: 06/26/2010 at 09:34AM

Dory Peters

Real Estate Investor · dc, Washington D.C.

393 posts
1985 Influence
3 Awards

Icon_minipost Sep 01 '09, 12:47 AM

Originally posted by Anthony E Russell

Originally posted by Jon Holdman
Assuming this is a reg D offering, you can only ask for investments from people that you already have an existing relationship with. So, approach everyone you know.

Jon,

Right on about that.

Anthony

I think the key issues with the post are that Shaun got into specifics on a particular deal, and inferred certain guarantees for the yield. Instead, had Shaun simply introduced himself as an investor who syndicates, not mentioned anything about a specific deal, and asked anyone who might be interested to contact him, then he could use the normal "2-step" introduction method to establish those relationships before presenting the deal (which incidentally should have been done via the PPM [just as it would be done via the prospectus for a public offering]). And then he would have complied with SEC Regulation D Rule 506 (which Jon of course correctly pointed out that he didn't comply).

Edited: 06/26/2010 at 09:34AM

James Paine

· La Jolla, California

1 post
19 Influence
1 Award

Icon_minipost Dec 24 '10, 10:58 PM

I don't know that he was too far out of line. I agree that he needs to clean up his 2 step introduction.