Private Placement

8 Replies

Does anyone know anything about private placement funding or organizing a group to invest

Thomas, I have used a PPM (private placement memorandum) to raise funds for my large apartment deals.

Last month (3/15) I had a securities attorney answer questions for my students re: private funds, etc. 

I can get you a copy of the recording if you would find it helpful.

Medium revised aigp logoBrian Adams CPA, Adams Investor Group, LLC | 215‑967‑1464 | http://www.AdamsInvestorGroup.com | Podcast Guest on Show #135

Brian,

I would also like to have a copy of the recording. i'm sure it would be helpful as I am also looking at a project here in IL and would like to have information on private funds. My email is [email protected]

Thanks

I have been trying to find info on private funding, how it's done and if I can really trust this kind of financing.  I need to know more.  Please send a copy to [email protected] It would be much appreciated.  Thanks.

Make sure you get a securities attorney to help you.  It will seem expensive, but WELL worth the cost.  Check out www.syndicationlawyers.com  I heard Gene Trowbridge speak last weekend, and he literally wrote the book on this stuff.  He's got lots of good info on his site.  Also google 506(c), 506(b), and the JOBS act.  That'll get you a lot of information.

There was a real estate investing event a few months ago at which several successful investors in the DFW area were part of a panel.  Somebody asked if they used PPM's for their deals, and all but ONE said they do not.  There were comments such as, "the SEC isn't following the little guys," and "If you know all your investors well enough you don't really need one."  That scares me to death as a deal sponsor.  All it takes is ONE investor to claim they didn't understand the investment, and they can screw up the whole partnership.   If you're only dealing with accredited investors, I guess you're somewhat more protected, but I still like the protection.  

@Tom Lafferty is correct.  Everyone is happy is the deal is going great.  If the deal goes sour, that can be the end of your career, all of your assets and possible your freedom.  Know the rules, follow them and be safe.  For small deals, I would do everything I could to stay out of the securities business, but you need to know where that line is and not to cross it.  If you are going to cross the line do it right.

Medium sig  3 Jeff Greenberg MBA, Synergetic Investment Group, LLC | [email protected] | 805.372.1799 | http://www.synergeticig.com | Podcast Guest on Show #115

 @Brian Adams and @Thomas Wright

Finding a good securities attorney could often be quite a chore. If any of you happen to have any referrals may send such by email or a private message. Thank you!