All Forum Posts by: Amy Wan

I know the guys at propertycoin. They do have securities counsel involved I believe but last I heard, their offering was on hold until a future date.

@Alina Trigub thanks for the tag.

Generally, PPMs are not required where you take funds from accredited investors only—they’re technically only required where you’re taking funds from even one non-accredited investor. That being said, even institutional deals that are accredited investors only have PPMs because its good practice and, as you mentioned above, the lack of one increases one’s exposure.

I’ve never heard of any rule that says fewer than 3 investors don’t require a PPM. Securities law doesn’t look at number of investors, but whether something is or is not an investor contract (aka security).

@Han Oo as a US securities attorney this sounds like it falls under Regulation S. But you’d also need Burma and Singapore counsel to weigh in.

I've had clients syndicate as little as $250K, but generally i tell folks that if its sub $500K, to bundle up multiple properties in one offering to offset the legal and transaction costs.

If you're doing a 506b, generally you should start with friends and family. It its time to build a track record and trust with investors. As you do more and more deals, they will refer other folks over. If you go the 506c route, you can advertise, but it still requires engendering trust to get them over the hump to invest.

There are a lot of interesting responses in this thread. Just remember that certain activities require certain licensure-- e.g. an RIA licensed for some of the activities described above.

You should consult with a securities attorney in the country from which you are taking investor funds, and in the country where the offering is being conducted. The laws of a country apply to the citizens and residents of that country.

@Allyssa McCleery

partners dont need to have same percentage ownership. you can set this up for a small deal, but typically a raise of less than 250-500K doesnt make sense. You dont consult the attorney to sell the security--you consult the attorney to help you set up, structure the deal, write the disclosure, and counsel you through the process.

"is them having decision making power, being kept informed of activities, and participating in a annual or bi-annual meeting enough"-- no. they need to be a true sponsor, not just in name. 506s generally start at $7500 a deal.

Yea, i was confused by this thread. people were talking about 506b and c, but the poster asked about reg A. I would definitely not do a Reg A unless I had to due to timing, qualification, and price.