All Forum Posts by: Tom Dittrich

Hi all,

I host an investing group for about 2200 physicians across the United States. One of our doctors is looking for a lender for an investment property in Southern CA.

To be clear not a hard money situation - just looking for a good connection to get financing.

Does anyone have a good referral for her?

Thanks!

Tom

Hey all,

I host a physician only investing group on social media. One of our members is looking for an agent who is investor focused, specific to Riverside/San Bernardino California.

Anyone have a good recommendation I can pass along?

@Jerel Ehlert

Forgive me Jerel. I am a little confused by your post. Are you saying the broker dealer route is actually a riskier venture?

Thanks @Bryan Hancock for your reply.

My original plan was to organize the physician group and simply come in as a Co-GP and actually perform outside duties for compliance reasons (as well as personal interest).

Then it occurred to me that in the future when we have potentially dozens of deals this may get complicated and time consuming. It also may make it difficult to scale if our investor group grows substantially.

This is part of the attractiveness of simply playing the role of capital raiser and investor relations person for our physician group and going the route of broker/dealer. I guess the trade off is “fitting in the box” and strictly following all the regulations.

If anyone has any contacts in these roles I would very much appreciate a referral. Thank you!

Hello all,

My question is about capital raising and working under a Broker/dealer to sell securities in the syndication space. 

First quick background. My pool of investors is 1500 physicians from across the US. I have hired coaches, consultants, SEC attorneys, real estate focused CPA’s to keep us on track. We have formed partnerships with solid operators and have some established deal flow coming in, but have yet to enter our first deal.

Website for reference: digcapital.com

I understand that the industry standard is the Co-GP route. I would like to make sure I am 100% following the law and I see my primary value as bringing capital to syndication deals

Does it make more sense for me to attach DIG Capital to a broker/dealer and get licensed through FINRA? Per my attorney with this route I can legally be compensated for “raising capital” provided all the regulations are followed.

Has anyone here gone this route and found success?

Please reach out to me if anyone has experience and advice!

Thanks!

Tom

Thanks Lance. I’ll reach out to you to discuss further.

 Hey Spencer thanks for the reply.

My understanding is that the answer is likely no, not legally anyhow. Doing so is considered "brokering a security" and requires one to be a broker/dealer registered with the SEC.

The exception of course is if you actually are a GP, meaning you participate meaningfully in the partnership in terms of vetting the deals, doing due diligence, helping with managing the asset. You can't get a piece of the GP and just raise capital. 

Thanks for your reply.

Yes you are right its not a huge compensation. For a fund of 1million invested in any number of deals that average a 15% IRR with a 7% pref. I would get 2%, then 20% of 8% ( which is a total of 3.6% of the AUM. So 36k for getting about 10 investors together and doing the leg work for them. Scaling that up 2 or 3 times is where it really starts to makes sense, so funds in the 5-10mil range which then would allow a few employees.

I also think that this would help put the "Doctors Investing Group" in a position to syndicate and operate on our own in the future. 

Just purchased on Amazon. Thanks Dallon.

Thank you Dallon. Yes I had in mind negotiating terms like higher prefs and possibly even bigger equity slices. Say instead of a 70/30, its a 75/25 with a 1% higher pref. The trade off for the sponsor is having the deal fully funded by our group of physicians quickly.

I am also on board with not taking high fees initially. However, this is a ton of work and as you mentioned carries significant fiduciary responsibility. There is also cost in running the website and investor portal - somewhere around 15k annually. To raise a few million dollars and manage for 5+ years, this really has to be worth my while (read 100K+). Finding a balance will be a challenge but I'm hopeful that I can work something out that is equitable for all parties.