Will pay you to bring me investors!

Question

Looking for accredited investors for syndication deals ranging from 24-29% annual returns. If these deals aren't right for you or you're not accredited, I'd be happy to pay a commission for every investor you send my way.

Brian Burke · Answer

That’s a great way to land you and your capital raisers in jail.  Paying a commission for raising capital is illegal unless the person bringing the investor is a licensed securities broker/dealer.

Kerry Noble Jr · Answer

Its been so hard raising capital but thats what ive been doing. would love to connect

Zach S. · Answer

Definitely not a good day at all, I do understand.

Evan Polaski · Answer

@Zach Stevenson, I know this may be belaboring the point, but you, as an advisor, does not give you, or the groups you are advising for, any leeway.

Given there are very upset investors, on these forums, from the group your LinkedIn profile says you are advising for, I would be extremely cautious.

I could see this playing out as: Investors complain to SEC about a sour investment > SEC decides to poke around > they come to these VERY GOOGLE FRIENDLY forums > they see you offering commissions as an unlicensed "advisor" > they link you back to the original group, who also may or may not, based on some posts here, have handled their filings accurately >  You and the group you "advise" for are in SEC depositions, spending 10s, if not over $100, of thousands of dollars on legal bills to try to defend yourself against securities violations (which based on quick google search could lead to up to 25 yrs in prison).

I mention all of this not only for your benefit, but for the protection of many of the syndicators out there that adhere to rules.

Evan Polaski · Answer

@Zach Stevenson, based on your response, it further exemplifies your lack of understanding of SEC rules.

506(c) does not allow you pay commissions.  It does allow you to advertise, but that's an apples and oranges conversation.

Your license, which based on your LinkedIn profile makes me think your real estate license, is not securities broker license and is irrelevant.  You are not transacting real estate.  You are transacting securities.  So, back to Brian and Chris's posts, IF you start raising capital and IF you pay people a commission for your investor leads, I would do some research on disgorgement, securities violations and the various other punishments that come along with it.

Chris Seveney · Answer

I am going to go with my gut and guess you did not provide $46% IRR because if you were you would not need to pay people to bring you money institutional money would be flocking you.

Secondly, a registered rep would absolutely know they cannot pay an unlicensed person money, does not matter if you are licensed.

Lastly, your website is 3 months old....

Curious what is your CIK code for your 506c's?

What is your CRD #?

Will pay you to bring me investors!

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