All Forum Posts by: Nate Marshall

To play both sides and now from the perspective that I need reliable and accurate Scope of Work and Draw schedules for the lenders I think a lot of work needs to be done to get investors and contractors on the same page at least to co exist. I've seen investors come off as contractors are too expensive and want too much upfront and so many are fly by nights whereas contractors believe that some investors are cheap and don't respect their time and investment into their business. 

Investors shouldn't use contractors as a courier service. I've seen that firsthand where an investor bought flooring, cabinets and more at off the wall distributors that didn't offer delivery and then expected the contractor to pick up the materials. One such investor had 8 pallets of materials.

Contractors shouldn't expect investors to pay large deposits upfront but should be reasonable like 15-0% with a draw schedule. GC's have to pay for general liability, workers compensation and quite often their subs want small deposits.

Investors who want contractors to do bids or help build a scope of work should probably pay one to do it for them who wont be on the project but can act as a consultant or something. I've thought about creating such a service. Help investors with pricing, estimating, building the scope of work, draw schedule, vetting insurance and licensing. 

Just my .02!

@James Wise yep. It’s why I always put (not the athetic conference!) when I post those 3 letters anywhere.

Problem is there are hundreds of people who are in violation of federal laws for how they’re raising money. The SEC had their cousin the FBI arrest a guy who raised just $567,000.00. He thought he could fly under the radar.

@Michelle Powers Not all securities lawyers stay on after the initial registration, offering and all that. Not sure if she or Gene is involved. There are securities attorneys who handle defense and litigation and some do the front end processes.

@Michelle Powers The SEC doesn’t have arrest powers as they’re not law enforcement. They have their friends at the FBI and IRS handle that with the local US Attorney. States and DA’s may file on their own but not the federal charges.

@Cimarron Carter Yes. It’s a routine matter. It’s documents and paperwork. It’s easily fixed. Could be anything from a new executive or some other matter. A lot of jealousy regarding Jay and TREF because he accomplished what so many say they want to do and don’t do.

In the end he will come out ahead. They are gearing up for another round. They have put a good team in place and Jay regularly does his TREF talks. He puts a lot more out there then most fund managers.

@Brad Griffin There is a great deal analyzer developed by David Toupin with Obsidian Capital. He has a free version and his fully developed version.

Also Michael Blank has a lot of good info at www.themichaelblank.com

@James Wise I see it in just about 90% of the “investors” who want to borrow from my lenders. What’s worse are people want to get Investors for their deals who don’t understand the SEC and regulations.

Here are some additional items you WILL need:

Executive Summary

Private Placement Memorandum

Subscription Agreement

Business plan and Operating Agreement for the LLC or Corporation

FORM D for the SEC

If you go for a 506(C) you can advertise but have to vet accredited investors. This needs to be done by a 3rd party.

506(C) template for syndication

Investor Portal 

Vetting accredited investors.

Marketing and Promotion

EDGAR registration

You can DIY but many moving parts.

Make sure you have good plans and talk to Arvada first. Look at the MEP hard. MEP is Mechanical, Electrical and Plumbing. It will kill your profit if you don't get it right. Arvada is particular about electric.