All Forum Posts by: Vitaliy Gnezdilov

Quote from @Taylor L.:

You need to talk to a securities attorney. This does indeed sound like broker-dealer activity because you're compensated based on the sales of securities which are issued by a 3rd party. 

Thanks for taking the time to weigh in. Would you happen to have a securities attorney contact by chance?

Hello all,

We’re a marketing company who creates advertising campaigns on behalf of 506c syndications (RE funds).

Specifically, we act on behalf of the client to set up and manage their ad campaigns that bring them accredited investor leads.

To be most aligned with our clients, we work with their marketing teams to create the assets and help investor relations guide prospective investors across the finish line (on a sales consulting side)—we do not interface with investors, and ultimately the client owns every marketing asset/investor relationship that resulted from our collaboration.

From a compensation standpoint, we want to align ourselves as much as possible with the results that we deliver for our clients. The ultimate metric we want to measure is capital raised.

What is the best way for our little marketing/advertising company to only get paid when our clients get capital across the finish line from our advertising efforts (which were created on our their ad accounts, using their branding, etc)?

Is there a way to do this without becoming a full fledged broker dealer?

Quote from @Ana Vergara:

Quote from @Vitaliy Gnezdilov:

My wife and I have been looking for SFH for over a year now and have passed up a few simply because we're inexperienced in estimating remodels.

I have made a conscious decision to get better at this, but wanted to know if contractors ever join potential buyers on a walkthrough of the property?

Is this something that they do? And how much might we pay for an hour of their expertise?

We actually did this once on a property we were considering. It actually looked a lot more intimidating than it actually was. So thought this was super helpful. We ended up paying $200. But it was worth it for the peace of mind.  

 Awesome. Thanks for sharing your first hand experience, especially so close to home. Glad to hear it wasn't as intimidating. This is the kind of revelation I'm hoping for (or the other way around—want to remove my bias). May I ask where you live in/around Saint Paul? We're in White Bear, but looking in Stillwater.

Quote from @Mike Hasson:

A good question and I commend your decision to learn how to estimate budgets. It will be invaluable in your investing journey. You'll get better with experience but here's a few suggestions to get you started. 

A) The Book on Estimating Rehab Costs by J Scott. This book break down costs to labor, materials, finishing levels and more. It really is a great start as a baseline for estimating costs.

B) RepairPricer.com - If you have an inspection report, you can upload the report to this website and they will use AI to give price estimates for everything in the report, with impressive accuracy. 

Even if you do hire a contractor, I still recommend to learn as much as you can, as not all contractors are the same, and there are multiple ways to do just about everything. Learning the language and the lingo, and having a solid understanding of EXACTLY what you want to accomplish will help you be successful. 

For example, will your project be fine with off-the-shelf cabinets from home depot, or do you need a custom solution? The custom builder pricing and handyman pricing are going to be wildly different, so when you do call on contractors, just make sure you know what you're asking for, and are comparing apples to apples when price shopping. 

A comment worth its weight in gold! Will check these out. Thanks, Mike! Have a great weekend

Quote from @Adam Tafel:

If not at the showing you can definitely get them inside during the inspection period. We do this all the time and I've never once paid a contractor an hourly fee. Finding a contractor with the time is the tricky part.. you can also get pretty far shooting detailed video and taking measurements. 

That’s actually a really good callout about the video. That’s a great worst case scenario. Thanks for that tip. Do you generally have a network of contractors you call? We don’t have any in our network that we’ve done work for so I don’t mind paying for their time. But I need to get into a habit of shooting videos. Thank you!

Thanks for your responses everyone. Much appreciated. 

Quote from @Stephen Keighery:

@Vitaliy Gnezdilov yes for sure but you are generally going to need to pay them for their time.

Of course. And happy to do so as going through the property with them will help me evaluate and estimate. It’s a worthwhile investment. 

How would one schedule a walkthrough with a GC? How much heads up do they need? Is there a specific service to look for when evaluating GC’s?

Or do I just call/ask around and invite one who feels right and go from there?

Thanks for your response

My wife and I have been looking for SFH for over a year now and have passed up a few simply because we're inexperienced in estimating remodels.

I have made a conscious decision to get better at this, but wanted to know if contractors ever join potential buyers on a walkthrough of the property?

Is this something that they do? And how much might we pay for an hour of their expertise?

Quote from @Brian Burke:

This regulation isn’t saying that you can’t form an entity for the specific purpose of buying securities.  Doing so is fairly common.

What this is saying is that an entity formed for the specific purpose of buying securities cannot be considered to be an accredited investor, unless all of the members are accredited investors.  An entity with more than $5 million in assets is considered to be an accredited investor if it was not formed for the specific purpose of buying securities.

Brian, thank you for your response and clarification. I know people have formed LLCs for this reason so this left me quite confused, but it makes sense now. I appreciate you sharing your expertise. Have a great weekend!

Hi, I am looking to invest in a real estate fund syndication and I have received advice to invest through an LLC for a specific tax purpose.

However upon research, I am finding that an organization cannot be formed with the sole purpose of purchasing specific securities. And my question is why is this not allowed?

Source: https://www.sec.gov/corpfin/amendments-accredited-investor-definition-secg

What am I missing?