The Hotel Investor Playbook Attorney Reveals Why Most Hotel Syndicators Are Breaking the Law | Bethany LaFlam E65
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Jan 6, 2026 Bethany LaFlam, a securities attorney and real estate investor, shares her expertise in SEC compliance for hotel syndicators. She reveals how first-time fundraisers often unwittingly break the law by mishandling capital raises. Discussion includes the importance of risk disclosure, the nuances of 506(b) vs. 506(c) structures, and the perils of paying capital-raisers improperly. Bethany also reflects on lessons from her own failed $50 million fund and emphasizes the importance of vetting investors to avoid toxic partnerships.
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When A Raise Becomes A Security
- A syndication is a security when investors expect passive returns from your efforts.
- Treat any pooled money where others rely on your work as a regulated security.
Disclose All Risks Upfront
- Do full, plain-language risk disclosures to every prospective investor before they invest.
- If they invest after you warned them, you're far more protected legally and ethically.
Match Investors To The Right Exemption
- Determine whether investors are accredited and how you reach them before choosing an exemption.
- Your investor mix (accredited vs non-accredited) dictates whether you can advertise and which rules apply.
