Syndication Law & The Private Placement Memorandum Attorney The 'Friends & Family Loan Loophole' - Is It A Legal Way To Syndicate Without Actually Syndicating?
Tilden Moschetti, an attorney with Moschetti Syndication Law Group, discusses a common misconception about a potential loophole in securities regulations. Some individuals believe that borrowing money from friends and family in the form of a loan for a syndication does not constitute a security, thus bypassing the regulations. Moschetti explains this is not the case, citing Reeves v. Ernst and Young, a Supreme Court case that outlined specific cases where loans are not securities. He warns that any venture where investors expect profit from passive involvement, such as syndications, is considered a security and must comply with SEC regulations.
Read more about Reg D - The SEC and Its Regulation D: https://www.moschettilaw.com/sec-reg-d/
Read more about real estate syndication - How to Syndicate Real Estate: https://www.moschettilaw.com/how-to-syndicate-real-estate/
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Moschetti Syndication Law Group is a boutique syndication law firm, serving small and growth-bound syndicators, and well as private equity firms. We keep our firm ‘boutique’ size so we can tailor the services to each client’s unique needs without turning the firm into a faceless factory or passing unnecessary overhead expenses onto our clients. (As our client, you’ll only pay a fixed fee, so no surprises.) As for the client experience, we give real-time answers without making you book an official appointment. And we’ll work with your ambitions and overall vision to help you close the current deal and fill-in that ‘missing’ piece - whatever you need - to keep adding more syndications to your portfolio. We keep syndicators syndicating (TM).
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