In this episode, Whitney interviews Arina Shulga, a corporate and securities attorney and founder of Ross and Shulga PLLC. Arina shares how some insights which will help syndicators navigate the legal complexities of capital raising. You will learn whether non accredited investors can participate in real estate syndication. What are the important nuances of Rules 506(b) and 506(c) that syndicators should be aware of? Can syndicators openly solicit investors for their projects? Which professionals and agencies can issue certification that deem an investor as “accredited”? For all this and much more, tune in to our latest show now.
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Time Stamped Show Notes:
- 00:28 – Whitney introduces Arina to listeners
- 01:02 – Arina shares her background information and reveals how she transitioned to real estate syndication
- 02:13 – What is a securities offering?
- 04:40 – Who is an accredited investor?
- 05:52 – Can non-accredited investors participate in a real estate syndication?
- 07:38 – Nuances of Rule 506(b) per Section 4(2) which allows syndicators to get accredited and non-accredited investors on board
- 08:25 – Do syndicators need to provide disclosure information to investors?
- 09:34 – Arina shares that Rule 506(b) allows syndicators to reach out to only those with whom you have pre-existing relationships
- 10:02 – What is a pre-existing relationship? Arina shares how syndicators can solicit investors
- 13:27 – What are the benefits of Rule 506(c) over Rule 506(b)? Are there any drawbacks of Rule 506(c)?
- 15:00 – How can an issuer verify that a person is an accredited investor?
- 15:40 – Which agencies or professionals can issue certification that deem a person as an “accredited investor”?
- 17:09 – Do you need certification to verify an “accredited investor” under Rule 506(b)?
- 19:13 – Recommended documentation that will help authorities verify a “pre-existing relationship”
- 19:51 – Start 2019 off right by joining Whitney at the Multifamily Investor Summit in January
- 20:52 – At what point in your investment cycle, should you get in touch with Arina?
- 22:40 – Does it matter if the property is located in another state?
- 24:51 – Can syndicators advertise projected returns on their website and other marketing material?
- 28:06 – Arina asks syndicators to ensure that information on social media tallies with that on the website
- 29:51 – Common mistakes that syndicators make that you should be aware of
- 32:23 – Is raising money from accredited investors preferable compared to raising money from non-accredited investors?
- 33:10 – Arina shares her contact information
- 33:02 – Share, review and subscribe to the Real Estate Syndication Show
- 34:12 – Come, be a part of Joe Fairless’s, “Best Ever Conference” in Denver
- 35:00 – A special thanks to our sponsor, Lifebridge Capital
In this episode, you will learn:
- Nuances of Rules 506 (b) and 506 (c) and how they affect the capital raising process in real state syndication
- How to get an “accredited investor” certification
- Rules for soliciting investors for your syndication project
- Reasons why you should raise money from accredited investors rather than non-accredited ones