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If you’re looking to scale your efforts at raising capital with an online platform, you may be curious about what you can and cannot do to market your business. What exemptions do you need to file in order to legally advertise a multifamily offering? How do you build the ‘preexisting and substantive’ relationship with investors the SEC requires for the 506(b) when you’re connecting online?

Gene Trowbridge is the managing partner of Trowbridge Sidoti LLP, a California law firm that specializes in real estate syndications and crowdfunding. Gene has extensive experience in commercial real estate investment, and in the last six years, his firm has authorized securities offering documents for more than $1.5B of equity raised. He is also the author of It’s a Whole New Business, the definitive book on securities for multifamily investors.

On this episode of Apartment Building Investing, Gene joins me to discuss the two methods for legally advertising a real estate syndication (online or otherwise), the Reg A and 506(c). He explains why the 506(b) is more popular than the 506(c) and offers advice on proving a preexisting and substantive relationship with investors per the rules of the 506(b). Listen in for Gene’s insight on doing a 1031 Exchange in a syndication and learn how to leverage the tenant in common agreement to bring on new investors.

Key Takeaways

The two ways to legally advertise a real estate syndication

What syndicators need to know about the Reg A

Why more investors don’t do a 506(c)

The SEC rules around the 506(b)

What it means to have a substantive + preexisting relationship

Gene’s advice on proving a preexisting relationship

How to work with an investor with 1031 Exchange money

What to do when some of your LPs want their money from a sale

How to bring on new investors in a 1031 Exchange project

  1. Operating agreement may allow for new investors in LLC
  2. Two separate LLCs as tenants in common (= partnership)

Connect with Gene Trowbridge

Trowbridge Sidoti LLP

It’s a Whole New Business by Gene Trowbridge, Esq. CCIM


Regulation A

Regulation D

No Action Letters

1031 Exchange

Gene’s TIC (Tenant In Common) Epidemic Webinar

Opportunity Zones

How to Raise Millions in Days with the Platform Builder Framework

Deal Maker Live

What’s the Best Investment: The Stock Market or Real Estate?

Nighthawk Equity

Podcast Show Notes

Review the Podcast on iTunes

Michael’s Website

Michael on Facebook

Michael on Instagram

Michael on YouTube

Apartment Investor Network Facebook Group

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