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Updated about 4 years ago on . Most recent reply

User Stats

226
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156
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Tom Lafferty
  • Plano, TX
156
Votes |
226
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Did your investors complain about 506c verification process?

Tom Lafferty
  • Plano, TX
Posted

I have only done 506b offerings so far, and am considering a 506c.  My only hesitation is the grief it may cause the investors as they go through the verification process to prove they are accredited.  Have had several investors in other deals have attorneys/cpas who would not provide a letter so they had to go through verifyinvestor.com or similar, and had to deal with annoying questions over several days with the attorneys. 

To those that have moved from a 506b to 506c with the same investor database, did you get much pushback?  Lose investors because of it?  Obviously if they want to invest bad enough they'll do what is needed, but just wondering if its worth the hassle.  My typical investor is $50-$300k, so there is usually a large number of them.  Sounds like a mess, any experiences positive or negative appreciated.  

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