Common mistakes capital raisers make that could send them to jail

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.

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At GowerCrowd, 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 discounted opportunities they can invest in.

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

Real estate investing for passive (accredited) investors is turning messy with vast swathes of loan maturities approaching which is going to send many sponsors into default causing their investors to lose capital.

While this is nothing to be celebrated, it will also bring in a period of wealth transfer and opportunistic investments.

We’re here to guide you by looking at the harsh reality of real estate investing, examining the risks and the rewards in conversations with some of the world’s top experts so you can make informed decisions.

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.

Is the commercial real estate world on the cusp of a major correction? Is it 2007 or 1989 all over again? Will passive investors (limited partners) who have invested in syndications (through crowdfunding or otherwise) see losses they had not predicted? How can you access discounted real estate opportunities this time around that were only available to a select few during prior downturns?
Let us help you prepare your real estate portfolio no matter what the future holds, whether it be business as usual for real estate investors or a period of wealth transfer where those less prudent during the good times, lose their assets to those who have sat on the sidelines, patiently waiting for a correction.

Be among the first to know of discounted investment opportunities as the market cycle plays out by subscribing to the GowerCrowd newsletter at https://gowercrowd.com/subscribe
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IMPORTANT NOTICE: This audio/video content is for informational purposes only and should not be regarded as a recommendation, an offer to sell, or a solicitation of an offer to buy any security. Any investment information contained herein is strictly for educational purposes and GowerCrowd makes no representations or warranties as to the accuracy of such information and accepts no liability therefor. Real estate syndication investment opportunities are speculative and involve substantial risk. You should not invest unless you can sustain the risk of loss of capital, including the risk of total loss of capital. Past performance is not necessarily indicative of future results. GowerCrowd is not a registered broker-dealer, investment adviser or crowdfunding portal. We recommend that you consult with a financial advisor, attorney, accountant, and any other professional that can help you to understand and assess the risks associated with any investment opportunity. Unless otherwise indicated, all images, content, designs, and recordings © 2023 GowerCrowd. All rights reserved.

Tags Funding Strategist, Real Estate, Working Capital