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The Gold Collar Investor

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TGCI 177: Syndication Do's and Don'ts

Feb 21, 2022

In today’s show, Pancham interviews Bethany LaFlam - managing partner of Premier Law Group PLLC and co-creator of Asherah's Box.

Her role in providing legal counseling and strategic matters to clients has helped protect syndicators and passive investors to stay out of legal troubles, a modern-day hero indeed! Following her entrepreneurial desires, she has now launched her own subscription box business and has been managing them since!

In this episode, she will showcase her expertise as she shares legal advice and the green and red flags to look out for when investing in a syndication deal! She'll also share her knowledge on the basics of public and private offerings, and what you should know about the Private Placement Memorandum.

Listen and enjoy the show!

 

Quote:

“When I started doing PPM for these syndication deals, I’m like “What do you mean there's cash flow?” I am just enamored by this world now and having the law background has provided sort of different color for that.”

Timestamped Shownotes:

  • 0:38 - Pancham introduces Bethany to the show
  • 2:47 - Her law career and how she learned about real estate investing 
  • 4:33 - Major differences between private and public offerings
  • 10:14 - The 3 main factors to look out for in a syndicated deal
  • 13:52 - Circumstances that limited partners need to be responsible for
  • 16:47 - Rule 506(c) vs. Rule 506(b) offering from an operator’s viewpoint
  • 20:09 - Taking the Leap Round
  • 20:09 - Launching her business as her investment outside of Wall Street
  • 24:05 - Her fears when she started her subscription box business
  • 25:10 - Raising funds as her investment that didn’t work out
  • 26:00 - Why rookie investors should go and invest right now
  • 26:56 - Platforms where you can contact and connect with Bethany

3 Key Points:

  1. Don’t invest with an operator who guarantees you positive returns as it’s not allowed. As a limited partner, you’re protected from those and the liability would go to the operator.
  2. It’s important to tell potential investors about the potential risks in a deal upfront instead of telling them after they’ve made their investment.
  3. You can’t solicit or advertise your deals publicly if you’re conducting an offering under Rule 506(b) thus, seeing those offerings in social media is a red flag to look out for.

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