How NOT to raise capital for real estate

The Real Estate Reality Show

Did you know a staggering 70% of real estate General Partners have less than three years of experience?

So sayeth my guest, Mauricio Rauld, a securities and real estate attorney, expert in syndications and founder of Premier Law Group, while clarifying what lies beneath that statistic. Specifically, and equally astonishing, is that Mauricio has seen syndications with dozens of co-general partners as a way of bypassing securities regulations which prohibit results based compensation for capital raisers.

The guidelines for who can raise capital i.e. sell securities, are pretty clear and it seems that either some sponsors are unfamiliar with the regulations (no defense), don’t understand the regulations, (also no defense), or believe they have figured out ways of circumvent the rules while staying compliant (no excuse!)

Our conversation also looks at how sponsors can raise red flags with their online marketing efforts and how to avoid these pitfalls, as well as what investors should keep in mind before placing investments, particularly with sponsors they have little or no prior experience working with.

This episode is a detailed review of some of the biggest issues facing real estate capital formation and is a must watch for sponsors and investors alike.

****

In this brand new podcast series at GowerCrowd, The Real Estate Reality Show, we take a realistic view of commercial real estate investing, providing pragmatic insights for passive investors who are looking for sponsors they can trust and distressed opportunities they can invest in.

You’ll find no quick fixes or easy money ideas here, no sales pitches, big egos or hype.

You’ll learn how to build your wealth while protecting your capital investing as a limited partner in commercial real estate investments, even and especially during an economic downturn. Subscribe to our free newsletter here.