All Forum Posts by: Peter Dalal
Peter Dalal has started 1 posts and replied 13 times.
Post: New Syndication Forum!
- Rental Property Investor
- NY, NY
- Posts 14
- Votes 12
Dear Allan
Under Job Act There was changes in Regulation D. Under Rule 506 (c) , Syndicators may use general solicitations to Accredited investors only. The following may help you in understanding it:
http://www.sec.gov/answers/rule506.htm
Regulation D Rule 506: 506(b) vs 506(c)
In July 2013, the SEC adopted the new Regulation D Rule 506 (c), which is authorized by the JOBS Act (Title II). This new Regulation comes into effect on September 23, 2013. Under the new rule, persons (syndicators, sponsors, or promoters) that are selling "Securities" to private investors will be allowed to advertise their private investment opportunities, under certain conditions.
|
Rule 506 (b) |
Rule 506 (c) |
|
Unlimited number of Accredited Investors and 35 Sophisticated Investors |
Only Accredited Investors are allowed. No Sophisticated Investors |
|
Must have a pre-existing relationship |
Pre-Existing Relationship not needed. Allowed to Advertise. |
|
Investor needs to self-certify in their Pre-Qualification form that they are either an "Accredited Investor" or "Sophisticated Investor" or neither. |
Issuer must verify income of an Investor by reviewing filed tax returns for the past 2 years and written assertions from the Investor that the income is expected to continue. Issuer must also verify the assets by reviewing statements from brokerage houses or banks, etc or they have to obtain a written confirmation from a securities broker, dealer, registered investment advisor, licensed attorney or CPA, who asserts that the Issuer has taken reasonable steps to verify the Investor's accredited status within the past 3 months and that the Investor is indeed "Accredited". |
New Rule - Rule 506(d)
The SEC also adopted amendments to rules 501 and 506 to be implemented on Sept 23, 2013. This will be known as Rule 506(d).
This new rule will disqualify convicted felons and "Bad Actors" (persons that have been convicted of, or subject to a cease and desist order, injunction, disciplinary order, etc, issued by certain federal financial regulatory agencies or the postal service) from claiming a Rule 506 exemption.
Disclaimer:
You are responsible to check with and follow current SEC laws. You may visit www.sec.gov for any updates. We are not registered investment advisors, tax advisors, legal advisors, nor financial advisors. Any information presented here is for Educational Purposes only. Past performance is not indicative of future results. Please consult your investment advisor/tax advisor and legal counsel before investing.
Post: New Member Introduction: New York City
- Rental Property Investor
- NY, NY
- Posts 14
- Votes 12
Dear Darren, Mya, Nick and John
Thank you very much for welcoming me. I really appreciate it.
Please let me know, if you need any help.
Thank you again.
Peter Dalal
Post: New Member Introduction: New York City
- Rental Property Investor
- NY, NY
- Posts 14
- Votes 12
Hello Everyone.
My name is Peter Dalal, and I am from Queens, New York. I have been investing in real estate since 30+ years. I am a Managing Member of Multi-Family Acquisition Group. I found this amazing Bigger Pockets group from NYREIA meet up .
Our focus areas of investments are in Multi-family apartment complex and commercial properties by syndication in Emerging markets using Emerging market cycles and technical analysis. The group currently focuses to invest in New York, Illinois, Texas, Kentucky, Nevada and few other areas.
I appreciate the efforts Bigger pockets community members have put in this forum. I am always looking for new friendships and new opportunities. If I can be helpful to anyone, please let me know.
Thanks.
Peter Dalal