Charging Fees for Raising Capital (w/o Broker’s License)?

[Mark Heavey]

Hi - I don’t have a Broker’s license, but I’m trying to help a friend of mine raise capital for an apartment deal he’s working on. Am I allowed to charge fees for successfully bringing in new sources of capital? (I.e. if I was able to find $50,000 of capital via friends and family, can I charge a percent of that as a sort of finder’s fee?)

Is there any other sort of license I would need to charge fees?

If I can charge a fee, does anyone have a view on what market would be for this? (I’m in San Francisco, CA)

[Don Konipol]

@Mark Heavey

You can’t legally raise capital for any investment unless you’re licensed. The only exception is if you are a principal of the company raising the capital and own a significant interest in that company, with legal authority to bind the company in contracts.