Feb 19, 2019
Are you looking to raise capital or become a partner on a real
estate deal? You’ll want to make sure you understand key SEC
Regulations and guidelines. Today, we tapped Amy Wan, the Founder
and Chief Legal Hacker for Boot Strap Legal. Amy was included in
the “Top Ten Women to Watch in LegalTech” by ABA and she served as
legal counsel for one of the first crowdfunding firms to use 506c.
Amy joins us to share the difference between a joint venture and a
syndication, how to structure deals with passive investors and what
you can and can’t say on social media.
Key Market Insights
- Started doing international policy and governmental
affairs
- Put together one of the first real estate crowdfunding
platforms using 506c
- Worked at boutique crowdfunding and came across many first-time
operators who could not afford the syndication costs
- People doing small business had problems complying with
security laws
- Started boot strap legal to create “turbotax” for real estate
syndication legal
- Instead of spending an hour on the phone with the attorney,
they can input the info and save time and money
- System is setup for Regulation D 506 b and 506 c deals
- Difference between JV and Syndication – JV has no passive
investors; Syndication is selling securities to passive
investors
- You cannot publicize your offerings on social media
- If you are taking funds from someone and not using a PPM,
ensure person is an accredited investor
- Accredited: $200k annual income, $300k joint income, $1MM net
worth (minus primary home)
- When you accept money from non-accredited investor, you are
required to have all the PPM documents
- SEC assumes that accredited investors have money to lose and
know what they’re doing
- If you’re not going to do a PPM, at a minimum, create an entity
and only take money from accredited investors
- If you are communicating to a closed group people aware that
you are a real estate syndicator, you can share that you have
- When connecting with social media, add people to database and
have two touchpoints
- Best tips for syndicators: Over communicate when things are not
going well, investors assume the worse when they don’t get
updates
- Sagewise, working with blockchain smart contracts
- Want to learn the financial side of real estate
syndications
Bull’s Eye Tips:
Winning Your Market: ABN – Always Be Networking
Tracking Market Changes: Lots of reading and talking to other
attorneys
Daily Habit: Every morning, write 3 things to accomplish to move
the business forward
Resources:
Bootstrap
Legal
Sagewise
Best Business Books:
Taxation Books
Digital Resources
Calendly
Tweet This:
“Two or more passive investors is a security”
“Do not post deals or return details on social media”
Places to Grab a Bite:
Long Beach – Hiro Nori - https://www.hironoricraftramen.com/
Connect with Amy:
Email: amy@bootstraplegal.com
Website: bootstraplegal.com
LinkedIn: Amy Y Wan - https://www.linkedin.com/in/amyywan/
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