EP 265: Gene Trowbridge Shares the Legal Side of Passive Real Estate Investing

Gene has been in the commercial and investment real estate business continuously since 1972 and in the legal profession since 1996.

Awarded the CCIM designation in 1977, Gene continues to serve as a member of the CCIM faculty and achieved Senior Emeritus Instructor status, upon 40 years of teaching. In 2002, he was selected as the Robert L. Ward Instructor of the Year in the Institute. In 2005, Gene was awarded the Victor L. Lyon Distinguished Service Award for his many years of outstanding contribution to the Institute’s education program.

He is a member of the California Bar. The founding partner of Trowbridge Nieh LLP, Gene’s law practice concentrates on the syndication of commercial and investment real estate, through both debt and equity. 

As a former syndicator, who for ten years raised investor capital; he served as the sponsor of sixteen investment groups, by raising equity from investors, through registered representatives in the broker dealer community, once sending out 1,676 K1s in a single year.

He was responsible for the organization of those investment groups; the acquisition, management, and disposition of the real estate; and communications with the investors.

Because of his hands-on syndication experience, Gene can communicate with his clients on both the technical and practical aspects of state and federal securities laws. Between Gene’s individual syndication background and the firm’s legal practice, the partners in the firm have written offerings of more than $5 Billion in monies raised. The median offering size is $2. 5 million. His practice writes offerings under Rule 506(b) and 506(c) of Regulation D, Regulation CF, and Regulation A+.

He has trained and mentored three different law partners, in syndication and crowdfunding, since 2008. He has delivered more than 250 live seminars on group ownership, exchanges, and taxation audiences across the country; his articles have been published in various real estate media outlets and he is a highly sought-after speaker on the topic of real estate group ownership.

He authored his first book It’s A Whole New Business in 2005. The Fourth Edition was released in 2021 and is available now at tnllp.com and Amazon.

He and Kay have been married for 50 years and have two daughters, Amy, and Emily. He enjoys music, travel and has run 37 half marathons since turning 60!

Chapters

00:00 Introduction to Gene Trowbridge

01:05 Current Market Insights for Passive Investors

03:51 Diverse Investment Opportunities Beyond Real Estate

05:53 Understanding Private Placements and Regulation D

09:09 The Evolution of Securities Regulation

14:56 Impact of Economic Crises on Investment Regulations

19:52 Future of Accredited Investor Definitions

21:44 Guidance for New Syndicators

22:22 Understanding Syndication and Securities

24:48 Control and Decision-Making in Partnerships

27:20 Investment Contracts and SEC Regulations

30:04 Key Questions for Passive Investors

33:27 The Importance of Relationships in Real Estate

37:17 Investing Strategies and Debt Funds

39:04 outro

RANDY SMITH

Connect with our host, Randy Smith, for more educational content or to discuss investment opportunities in the real estate syndication space at www.impactequity.net, https://www.linkedin.com/in/randallsmith or on Instagram at @randysmithinvestor

Keywords

syndication, private equity, accredited investors, real estate, securities regulation, Jobs Act, passive investing, market trends, due diligence, investment strategies

Summary

In this conversation, Randy Smith and Gene Trowbridge discuss the current state of the syndication market, the evolution of securities regulation, and the importance of due diligence for passive investors. Gene shares insights on the role of accredited investors, the impact of the Jobs Act, and key considerations for new syndicators. The discussion emphasizes the significance of relationships in the investment space and provides practical advice for both syndicators and passive investors.