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For a business that wants to raise capital on a much larger scale, Regulation A can change the conversation. Instead of limiting your investor base to accredited investors, Regulation A can allow you to publicly market an offering to both accredited and non-accredited investors. Under Tier 2, an issuer can raise up to $75 million
The Regulation A Qualification Process: What Happens From Form 1-A to Launch Read More »
Regulation A Tier 1 vs. Tier 2: Which One Should You Actually Use? If you are considering a Regulation A offering, one of the first decisions you will have to make is whether the offering will be conducted under Tier 1 or Tier 2. At first glance, the choice seems pretty simple: Tier 1 allows
Regulation A Tier 1 vs. Tier 2: Which Should You Use? Read More »
Why Would an Investor Invest Today If They Can Invest Later? One of the easiest capital raises to understand is a real estate syndication with a property already under contract. There is a closing date. There is a specific amount of equity that needs to be raised. If the investor likes the deal and wants
Why Would an Investor Invest Today If They Can Invest Later? Read More »
One of the advantages of raising capital for a real estate syndication is that the sponsor usually has something very specific to talk about. There is a property. There is a market. There is a purchase price, financing structure, rent roll, renovation plan, projected cash flow, and business plan. Investors can dig into the details
When There Is No Property to Sell, You Have to Sell the Sponsor Read More »
Most Sponsors Ask the Wrong Question About Rule 506(b) and Rule 506(c) One of the most common conversations surrounding Regulation D offerings starts with what appears to be a simple question. “Should I use Reg D Rule 506(b) or Rule 506(c)?” At first glance, it seems like the logical place to begin. After all, both
Most Sponsors Ask the Wrong Question About Rule 506(b) and Rule 506(c) Read More »
If you spend enough time in the real estate industry, you’ll eventually hear someone say that Rule 506(c) or Reg CF is the future of capital raising. After all, it allows sponsors to publicly market their offerings through podcasts, YouTube, webinars, social media, conferences, paid advertising, and other forms of general solicitation. They’re not wrong.
Why Rule 506(b) Continues to Dominate Real Estate Syndications Read More »
Spend enough time around real estate sponsors, fund managers, and entrepreneurs raising capital, and you’ll start to notice a pattern. Most people default to Regulation D. It’s understandable. Regulation D has become the workhorse of private offerings. It’s familiar, relatively straightforward, and in many industries, it’s simply what everybody else is doing. Because of that,
Why Most Syndicators Skip Regulation A (And Why That Might Be a Mistake) Read More »
Why More Founders and Sponsors Are Exploring Side-by-Side Offerings Most founders begin the fundraising process with a fairly simple objective: raise enough capital to execute the business plan. Whether the goal is launching a startup, acquiring an asset or business, expanding a franchise, developing a real estate project, or purchasing an apartment complex, the
How Startups Are Combining Reg CF Marketing with 506(c) Capital Read More »
Why Hospitality Acquisitions Often Feel More Like Buying a Business Than Buying Real Estate Hospitality transactions have started attracting more attention again over the last several years. Capital is still moving into the space, travel activity has continued recovering in many markets, and experienced operators are increasingly looking at hotels, resorts, and hospitality-driven assets as
Buying a Hotel Is Different Than Buying Multifamily Read More »
Understanding How Your Role Changes and Why It Matters At a high level, feeder funds are not difficult to understand. Capital is raised from a group of investors, pooled into a single entity, and that entity invests into a larger syndication. From a structural standpoint, it’s a clean way to organize capital and participate in
When Feeder Funds Raise Investment Adviser Questions Read More »