We’re hearing more buzz about syndicators becoming broker-dealers — a position that lets you create your own products and distribute them to registered financial advisors, giving you access to their client book. Today we speak with Rob Anderson about becoming a broker-dealer and if that’s the right move for you. We ask Rob about what a broker-dealer does and why his company brought in an in-house broker-dealer.
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A key theme in this episode, Rob highlights that real estate is a trust-based industry and that becoming a broker-dealer will inspire a huge amount of trust. With changes in the financial advisory industry, Rob talks about how a world of opportunity is opening up before explaining why it’s important to align your goals with investors. We discuss the benefits of becoming a broker-dealer versus registering as a financial advisor and why you need to rein in your language and not speak from the assumption as a broker-dealer. Near the end of the episode, Rob gives his advice on dealing with investors and what first-time syndicators can learn from investing in other people’s deals. Reflecting on COVID challenges, he shares how he’s been diversifying his offerings and standing out to both his tenants and investors by over-communicating with them. Rob provides incredible insight into the role that broker-dealers play in real estate. Tune in to learn if that’s the right role for you.
Key Points From This Episode:
- How in-house broker-dealers help you raise money and stay on the right side of the law.
- Why Rob’s company shifted from selling mutual funds to Regulation D investments.
- Inspiring higher levels of trust by becoming a broker-dealer and having FINRA oversight.
- Unlocking investors by approaching independent registered financial advisors.
- Aligning your goals and how Rob presents deals to financial advisors.
- Why the dollar-size of your deal determines if you should raise money through financial advisors.
- Becoming a broker-dealer versus a financial advisor and what each role is suited for.
- How investors might not have a clear goal when entering a deal.
- Not relying on assumptions and how dealer brokers are careful about their language.
- Hear Rob’s tips on raising money and working with investors.
- Dealing with COVID by over-communicating with your investors and tenants.
- Standing out to your investors by offering webinars.
- What Rob does to give back and how he’s been diversifying his investments.
[bctt tweet=”This is a trust business. You do anything that you can do to solidify and grow trust in every little action you do. And becoming a broker-dealer was a great way to do that very thing. — Rob Anderson” username=”whitney_sewell”]
Links Mentioned in Today’s Episode:
Phone BV Capital — 800-484-0073
About Rob Anderson
Rob Anderson oversees operations and direction of BV Capital, a private veteran-owned real estate private equity firm located in Dallas, Texas. BV Capital creates direct investment opportunities in commercial real estate for accredited investors and registered investment advisors. Rob’s core responsibilities and oversight duties include sitting on due diligence committees, structuring investments deals in real estate, managing investor relations and communications, and managing the capital raise process — which is most often through syndication, in addition to being the Principal of BV Securities, their in-house broker-dealer. Rob lives in Dallas, Texas, and is married with three very busy daughters and enjoys a good golf course when possible.
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