Anytime you are raising money from passive investors, whether it be for private equity, venture capital, or creating a fund, you need someone to help make sure you are doing it correctly. And that is where a securities attorney comes into play. Today we have John Nieh as our guest. John is a founding partner at Trowbridge Law Group and advises clients on matters that relate to crowdfunding, syndications, commercial real estate transactions, and security laws. Today, our conversation is largely based on security laws, including Regulation D rules (506(c) and 506(b)), Regulation A, and how they all differ. He shares some valuable insights regarding fast-paced syndicators and how it may potentially have a negative effect later on. We also talk about Regulation Crowdfunding and how it works. To hear more from John about the benefits and drawbacks of different security laws, syndications, and working in teams, don’t miss out on this episode! Tune in now.
Key Points From This Episode:
- An introduction to our guest, John Nieh.
- How he got into this niche of law.
- Other examples of businesses that syndicate to raise money.
- We dive into Regulation D rules: 506(c), 506(b), and Regulation A.
- What is rule 506(c), and the key pieces to that offering.
- The option to outbound your marketing or advertise your offer (with rule 506(c)).
- Investments or people that particularly lend themselves to 506(c).
- Difference between rules 506(c) and 506(b) and who is investing in them.
- The 506(b) rule and the key milestones that establish a pre-existing, and substantive, relationship.
- John’s thoughts on syndicators initially moving too quickly and how it negatively affects them later on.
- We talk about Regulation A and how it differs from 506(c).
- Some drawbacks of Regulation A.
- John takes us through what crowdfunding is and the different types available.
- He talks about working with teams, some common themes, both positive and negative.
- The importance of having a continuity plan in place.
- How John manages to be focused and present for all the people in his life.
- Why Yosemite is an important place for John.
- How to get in touch with John.
Links Mentioned in Today’s Episode:
Passive Income Through Multifamily Real Estate Facebook Group