089: Practicing Safe Syndication

When raising money, make sure that you're in full compliance to avoid jail-time. Don't engage in illegal activity like Bernie Madoff to swindle investors and defraud them.

Today, I'm talking to Mauricio Rauld, who is a syndication attorney who does my private placement memorandums (PPMs). Mauricio guides us through the process of syndication to stay out of the "po-po."

Topics on Today's Episode:

• Definition of a Security: Stocks, bonds, mutual funds, and other items
• Raising Money: Selling securities with passive investors involved in deals
• Pieces of Syndication Puzzle: Mauricio is legal piece that lets you focus on underwriting, due diligence, and other worrisome tasks
• Three Options: Register security or syndication with SEC; find exemption to registration; or consider it illegal
• Build Relationships to Meet Needs: What kind of return do you want? Are you more interested in equity or debt? Are you looking for tax mitigation?
• Bet on Corey, not Property: Submit a Letter of Intent (LOI), identify property, get it under contract, and perform due diligence
• PPM: Legal document that discloses material information and risks to investors
• Raising Money Gets Easier: Know minimum amount to raise to get deal done

Links and Resources Mentioned:

• Mauricio Rauld's Email
• Mauricio Rauld on YouTube
• U.S. Securities and Exchange Commission (SEC)
• Rule 506(b)
• Rule 506(c)
• Regulation A
• Regulation D
• Anti-Fraud Provision
• Bernie Madoff
• Michael Blank
• Adam Adams
• Rod Khleif
• 8 Critical Steps to Practicing Safe Syndications
• Multifamily Legacy Episode 86: The Juice is Worth the Squeeze (Part 1)
• Multifamily Legacy Episode 87: The Juice is Worth the Squeeze (Part 2)
• Multifamily Legacy Podcast on YouTube
• Multifamily Legacy Podcast on Facebook

Quotes:

"Corey can show you how to raise all the money, and Mauricio can make sure you stay out of jail." Mauricio Rauld

"If you're not getting all the proper disclosures, if you're getting carried away with your returns, there's things that you can do to make an offer illegal." Mauricio Rauld

"Each deal is different. It's got a unique risk. It's a unique loan. You've got to analyze and underwrite that particular deal." Mauricio Rauld

"In raising money, your syndication attorney is a big piece of the puzzle because there's right ways and wrong ways." Corey Peterson

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Text the word MONEY to 408-500-1127 to get my free private money program and credibility kit for single family.