Dr. B Show

SUMMARY

In this episode of Dr. B Show, Dr. B welcomes and interviews Nic McGrue, a securities attorney and founder of Polymath Legal. They discuss the differences between accredited and non-accredited investors, as well as the exemptions and exclusions for raising capital in real estate. Nic explains the nuances of 506(b) and 506(c) offerings, highlighting the importance of understanding the rules and regulations to avoid legal issues. He emphasizes the need for a strong power team, including an attorney and CPA, to ensure compliance and protect investors. Nic also advises new real estate investors to get educated, find a mentor, and take action to get started in the industry.

KEY TAKEAWAYS

Accredited investors have high income or net worth, while sophisticated investors possess the resources and knowledge to evaluate investment opportunities.
506(b) allows for an unlimited number of accredited investors and up to 35 sophisticated investors, while 506(c) requires all investors to be accredited.
Exemptions exclude certain securities from registration requirements, while exclusions are securities that are not considered securities at all.
A promissory note with a maturity date of 9 months or less is typically excluded from the definition of a security.
Building a power team, including an attorney and CPA, is crucial for real estate investors to ensure compliance and protect investors.

QUOTES

"I help you raise the capital for your deals, but make sure that you stay out of trouble while you're doing it." - Nic McGrue
"Get educated and then take action. Don't be in the situation where you're going to be a perpetual student on it." - Nic McGrue

You can learn more about Nic McGrue in the links below.
LinkedIn: https://www.linkedin.com/in/nmcgrue/

If you’re listening to the Dr. B Show Podcast, please subscribe, share, and we’re listening for your feedback. You can also learn more about Dr. Jairo Borja at http://borjaconsultinggroup.com/.

Show Notes

SUMMARY

In this episode of Dr. B Show, Dr. B welcomes and interviews Nic McGrue, a securities attorney and founder of Polymath Legal. They discuss the differences between accredited and non-accredited investors, as well as the exemptions and exclusions for raising capital in real estate. Nic explains the nuances of 506(b) and 506(c) offerings, highlighting the importance of understanding the rules and regulations to avoid legal issues. He emphasizes the need for a strong power team, including an attorney and CPA, to ensure compliance and protect investors. Nic also advises new real estate investors to get educated, find a mentor, and take action to get started in the industry.

KEY TAKEAWAYS

  • Accredited investors have high income or net worth, while sophisticated investors possess the resources and knowledge to evaluate investment opportunities.
  • 506(b) allows for an unlimited number of accredited investors and up to 35 sophisticated investors, while 506(c) requires all investors to be accredited.
  • Exemptions exclude certain securities from registration requirements, while exclusions are securities that are not considered securities at all.
  • A promissory note with a maturity date of 9 months or less is typically excluded from the definition of a security.
  • Building a power team, including an attorney and CPA, is crucial for real estate investors to ensure compliance and protect investors.

QUOTES

  • "I help you raise the capital for your deals, but make sure that you stay out of trouble while you're doing it." - Nic McGrue
  • "Get educated and then take action. Don't be in the situation where you're going to be a perpetual student on it." - Nic McGrue

You can learn more about Nic McGrue in the links below.

If you’re listening to the Dr. B Show Podcast, please subscribe, share, and we’re listening for your feedback. You can also learn more about Dr. Jairo Borja at http://borjaconsultinggroup.com/.


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What is Dr. B Show?

I love to help people. I love being a resource for everyone and know when someone has a question regarding their personal finances and business finances, they can contact me. In addition, I believe in the law of reciprocity and it is not just about receiving but also giving. I get excited when someone needs assistance in something and even if I don't have the solution, I know someone that usually does. I am a huge New York Mets Fan, New York Giants Fan, MMA Fan, and Pro-Wrestling Fan. Fun Fact, I have been to 16 WrestleManias. Lastly, I am also an International Best-Selling Author for my book entitled "Networking Your Way to Success: 10 Steps to Building Relationships & Expanding Your Business for Entrepreneurs & Working Professionals."