Has Anyone Used Regulation D Resources?

20 Replies

I figured this was the best forum to start out in, so has anyone used Regulation D Resources to start and run a Regulation D 506(c) through their service? If so, how did it go, how responsive are they, how much of what you need handled on the back end is covered, etc.

Thanks to all who can help.

You may want to look at Regulation A Tier 2 as well. You can raise up to $50,000,000.00 with even non accredited investors. I am starting my process with the SEC now. 

I believe Jillian Sidotti with crowdfundinglawyers.com may be able to help with either Reg A or 506C

Originally posted by @Nate Marshall :

You may want to look at Regulation A Tier 2 as well. You can raise up to $50,000,000.00 with even non accredited investors. I am starting my process with the SEC now. 

I believe Jillian Sidotti with crowdfundinglawyers.com may be able to help with either Reg A or 506C

Reg A's are better for more established entities, and have higher costs. On Jillian's webinar yesterday, she talked about the cost of them at $50k, including audits, and that's a little more than I want to spend. Reg D Resources can do the SEC Complant PPM for $6500 & an investor portal for $3500. Its very attractive.

I think ours will be around $15,000.00 but my partner is also a former Securities Lawyer so that saves us legal costs. I have looked into Reg D Resources. Theyre good but we want to be able to work with a wider range of investors.

Originally posted by @Nate Marshall :

I think ours will be around $15,000.00 but my partner is also a former Securities Lawyer so that saves us legal costs. I have looked into Reg D Resources. Theyre good but we want to be able to work with a wider range of investors.

Why would they hinder you Nate?

They wont. I just like the Reg A and JOBS act. I'm not opposed to a Reg D in fact I have thought about it. Doing a 506 C is ideal. I know Jillian has done those as well for clients.

@Christopher Winkler We used RegD Resources recently and have been happy with them. 

Pros -

They were responsive, inexpensive, and provided a good looking product. You can see for yourself by clinking on my link in my signature line. 

Cons - 

Although they help with some of the copy, you have to provide most of it or what it should look like.  Doug (CEO) is a great guide and explains the process well; he is very knowledgeable and helpful but, at the end of the day, he can't give you legal advice. They will not provide an operating agreement but you can have your own attorney draft one up.

So, they provide a good looking product at a reasonable price. I thought, "Build it and they would come." Hasn't worked out that way so far but that has everything to do with marketing, in my opinion. As with any website, you need to get your SEO going, do advertising, and whatever web marketers do to drive traffic to a website. We plan to do a lot better marketing on the next fund.

(We haven't had much luck contacting broker-dealers through his network or their conduit program but we didn't try that hard as we our time has been committed to other parts of our business. Raising capital, it turns out, is a lot of work!

"Raising capital, it turns out, is a lot of work!"

Aint' that the truth! Just like anything else in RE! Thanks for your feedback.

In speaking with the owner of Reg D Resources, he says they are in the process of interviewing and finalizing employment of an in-house attorney who will be managing SEC compliance regarding offering preparation and will be able to provide direct legal advice. Our operating agreements were done by an ex-SEC attorney.

Also for any list of broker dealers they or others provide, its really more about your fund and your company, track record, fund structure, experience, audited financials, etc, and your relationship with them. If you have little to no experience, ony raising a couple million $, or are yet another bluetooth speaker company looking to take market share from everyone else, not many broker/dealers, investment bankers, or placement agents will be of help. Those entities typically START in the $20m to $50M range, and to even get their attention is challenging. 

We are now getting traction, raised enough to break our self emposed minimun raise, and bidding on assets. Our fund is a passive investment for busy professionals that like the idea of notes and don't have the time, talent, or desire to work out these non-paying loans. The best part is the risk is reduced by participating in the purchase of dozens  of loans vs buying one junior lien. If that one goes belly up, you lose it all, if you buy 2-5, it might take away all the profit from the others, and with the fund, the anticipated profits should result in potenital for much lower risk of total loss.

Silverwood Capital Fund I buys non-paying Home Equity Lines of Credit (HELOC) and other junior or 2nd liens on nice homes ($200,000 to $1M), and we consider them like stock options. They have a much lower purchase price & lower percentage of Unpaid Principal Balance (UPB) than the senior lien, and a much higher potential return in a shorter period of time vs senior liens. Once we switched to this narrow niche about 3 years ago, of the ones we have purchased and exited on, our average return is over 50% net, results available upon request. While past performance is no idication of future returns, as long as we buy these in the 20-40% of the total owed, we expect to continue our performance.

For more information for accredited investors only, request access to our investor portal here...

These securities are being offered under an exemption provided by SEC Regulation D Rule 506(c). Only accredited investors who meet the SEC Regulation D 501 “accredited investor” accreditation standards and who provide suitable verification of accredited status may invest into this Offering.

  • Any historical performance data represents past performance. Past performance does not guarantee future results;
  • Current performance may be different than the performance data presented; 
  • The Company is not required by law to follow any standard methodology when calculating and representing performance data;
  • The performance of the Company may not be directly comparable to the performance of other private or registered funds or companies; 
  • The securities are being offered in reliance on an exemption from the registration requirements, and therefore are not required to comply with certain specific disclosure requirements; 
  • The Securities and Exchange Commission has not passed upon the merits of or approved the securities, the terms of the offering, or the accuracy of the materials.

I've used them before and was happy with their work and responsiveness. The dedicated website they set up for you is professional and easy to use on the back end and for the investor. I think they set you up very well to succeed but marketing and driving investors to the offering is up to the client. 

FYI.. Broker Dealers wont touch you unless you're in the tens of millions of dollars range. There are numerous reasons why. They have a lot of requirements to meet FINRA. Unless you're a REIT, major fund or doing an OTC, NASDAQ or NYSE (goodluck with those 3!) you shouldn't even think about using one.

As an issuer you have some safe harbors but please consult with a Securities Attorney before starting a fund. You have Jillian, Maurico, Paul Vincent, Bill Bronchik and Amy Wan just to name a few.

@Nate Marshall echoing Nate on the point of broker dealers. Most BDs, due to higher liability over the years, wont actually match-make deals with investors anymore (some do, but few and far between, and even then its not worth it until you're raising at least several million).

As an attorney, someones people ask we I/we attorneys help them find investors, which we do not. However, I think the important service we provide, aside from legal docs, is practical advice in actually navigating the regs (i.e., what strategies have worked for other clients in similar circumstances and what you should do when)

I wanted to update my response to this thread as I've been messaged a couple of times regarding my experience with Reg D Resources. We don't use them anymore. They put out a good looking product but it was expensive looking back on it. 

We've found a much more robust investor platform that can do a lot more. We started using Investor Management Services (IMS) last year and I love their product. Customer service and support are absolutely top notch. Their software allows investors to docusign their subscription agreement and keep track of their investments through a dashboard. I can generate professional looking quarterly statements and, best of all, the software can handle all of the distribution and investment calculations.

I've heard that Juniper Square is a great product, too, although I don't have any personal experience. Stay away from EVest Tech.

If you use Reg D Resources you're going to spend roughly $10,000.00 to get your PPM done and investor portal but you still have to find investors and incubate those relationships if you're doing a 506(B) or solicit enough investors if you're doing a C.

There are a lot better options out there. Much better, faster and less expensive. More compliant as well.

I would like to discourage everyone from using a non attorney service. Our firm will not review their documents because they are usually a mess. Further, services from non attorneys usually have some major element that is not included (like the OA).  Buyer beware. A full document ppm/oa/sub ag from a lawyer should cost on average $15k. 

For website portals I would recommend www.apartmentinvestorpro.com and also looking at www.syndicationpro.com 

Also, you've had 2 of the top securities lawyers weigh in here. Use them to write your PPM. It's easy to leave one item out and you're having the guys in the blue windbreakers with the 3 letters showing up at your office telling you to step away from the computer.