Our guest today is Mauricio Rauld, Founder and CEO of Premier Law Group, a premier boutique securities law firm where he also acts as one of the syndication attorneys who help real estate syndicators to raise the capital to pursue their dreams of financial independence. As a nationally recognized expert on private placements, he works with elite entrepreneurs who seek to increase and protect their wealth through syndications. Mauricio specializes in Reg D exempt offerings and educates investors from around the world on how to navigate the complex world of securities laws. He is also a regular contributor to The Real Estate Guys™ Radio show (consistently one of the most downloaded podcasts on real estate investing) and is Robert Helms’ advisor.
Key Points From This Episode:
*Mauricio shares takeaways from his last week's "Real Estate Syndicator Live" related to new and current accredited investor rules updates and new SEC definitions & what's coming pipeline.
*SEC Expands Definition of Accredited Investor
He says “SEC" has already passed a final rule (2020) expanding the definition of Accredited Investor, allowing individuals to get certified by passing an exam.
The Problem is, as of today, no one has yet been certified to award these Accredited examinations and so we continue to wait for the SEC to release the Certified companies and what exactly the requirements will be.”
Recent rumors in the SEC circles have the SEC increasing the current $1,000,000 net worth requirement. A recent Bloomberg headline insinuated that the level could be as high as $10,000,000.
His thoughts are that an eventual increase by the SEC makes sense. The original $1,000,000 threshold was passed in 1982 and adjusted for inflation, this number is closer to $3,000,000 today.
Mauricio more talks about DO’S & DON'Ts about funds of funds (FOF), to be aware of investor advisory rules, and different state exemptions rules.
He shares more information on 1031 & limitations on the tax side as per the IRS Revenue procedure code.
Tweetables
“It's not the state where your investors are located, it's not the state your LLC is set up in, it's where you technically advise your funds, usually its state where you reside…….. ”
@Mauricio_Rauld
“Big one is that You must distribute the profits from the venture proportionately if your 1031 investor owns 10% of property & syndicator owns 90% you can’t do preferred returns …………”@Mauricio_Rauld
Today’s Show Sponsor :
Garzella/Multifamily Risk Advisors https://garzellagroup.com/
