Optimal OPM Boston was a huge success thanks to a lot of hard work from some really great people.  Speaking at the event was, of course, the OPM Guru, Jillian Sidoti, as well as, Adam Davis and Chris Yates, who without none of this would have been possible.

The seminar mostly focused on the added benefit of not only knowing the law, but how to get the money, information that is priceless in the interest of becoming an effective investor.  The attendees of the seminar were guided by some really talented professionals who have decades of experience between them!  We are all very proud of the tremendous success of Optimal OPM Boston!

Turning Research into Inventions and Jobs
msnbc.com
… ingredients to help them achieve critical mass and bring their concept
close enough to product stage to interest venture capitalists or angel
investors. …

American Midwest: A Growing Center For Water Investment
NuWire Investor
“We have 20% of the world’s surface fresh water,” says Teresa Esser,
managing director of Silicon Pastures, a group of angel investors who fund
startups in …

DEMO: Armorize’s HackAlert notifies you if your web site is under …
VentureBeat
… a second round of funding this year from investors including Ambient
Sound Investments, Birch Venture Capital, and the company’s own angel
investors.

The Cliff: Most popular ideas and what’s next
By tjameson
Most popular ideas: angel investors (find a way to get good ideas to rich
people), banking the service hours (volunteer now, get help later) and
tickets for charities (unused tickets sold at discount prices and money
donated to …

Raising Capital Funds: A Strategy for Success · Free Work at Home Jobs
By Sam Parks
There are a number of lending institutions available and just to name some:
banks, venture capitalists and angel investors. You can research about them
online or ask for an expert’s help on which one will best fit your
business

MeLLmo Raises $4M to Expand its Market for Mobile Business …
By Bruce V. Bigelow
The secondary round means MeLLmo has now raised a total of $10 million from
its angel investors since the company was founded 21 months ago. “I think
we’ve ended up with a whole new paradigm for how to visualize and analyze
data,” says …

Sungevity brings in $6M to bring satellite data to solar …
By Camille Ricketts
Previously, Sungevity raised $2.5 million from Isolventures and Solon —
both solar companies in Germany where government subsidies have turned the
country into a photovoltaic watershed — as well angel investors, notably
including …

TECHNOLOGY: Green shoots taking off
North County Times
Lepre likened the growth in environmental technology companies to those
industries. Biotech has crossed over into green tech with biofuels. …

G20 summit: Too busy to be green?
Toronto Star
It makes for a compelling story of job creation, energy self-sufficiency,
reduction of America’s trade deficit through green-tech exports and civic..

Global Real Estate News Center
Real Estate Channel
Jennifer Lopez and Marc Anthony buy Icon Brickell condo. “I bought a condo
today in Miami,” Marc Anthony told People Magazine this past Monday. …

Colleges Take Advantage of Cheaper Real Estate
New York Times
As the recession prompts many adults, some jobless, to return to school,
including community colleges and technical institutes, commercial real
estate …

Coldwell Banker: Dallas homes for corporate transfers highest in Texas
Dallas Morning News
But the information collected citywide by local real estate agents through
the Multiple Listing Service doesn’t show this same price disparity between
…

Foreclosure’s shadow falling over commercial real estate
Baltimore Sun
Pity the poor commercial real estate owner. These guys often must refinance
– their loans only last, say, five to 10 years — and they’re having a
dickens …

Seeking Real Estate Bargains? Try Looking at the High End
Wall Street Journal
By BRETT ARENDS Falling real estate prices are becoming as much a feature
of high-end neighborhoods as ocean views, infinity pools and four-car
garages. …

Real estate agent ranks thin as market suffers
Miami Today
A real estate license is valid two years and post-licensing education is
required. From 2005 to 2006, the state issued 12235 fewer new sales
associate and .

We have extended our tour to include the week of October 12-15th due to demand from additional East Coast REIA groups to have Jillian speak this fall!

REINGUSA REIA in Nashua NY October 12th 6:00pm

LIREIA in Long Island NY October 13th at 6:00pm

REIA OF NYC in Manhattan on October 14th at 6:00pm

Please join us at one of the events on our TOUR CALENDAR or sign up for our upcoming seminars in Boston November 7th & 8th and Philadelphia November 9th!

Hit the Road…Jill

*NEW DATES ADDED*

This fall we have decided to undertake a massive tour of East Coast investment groups and REIAS to get to know our investment and real estate counterparts on the shores of the Atlantic in preparation for our Boston and Philadelphia Educational Seminars this fall. Jillian Sidoti of OPM Guru and Ali Reynolds of The Get Smart Group will be traveling together to attend REIA Meetings, workshops, special events and meeting with individuals who are interested in learning more about the legal services for Investors offered by Jillian and the educational programs that we provide nationally on an ongoing basis.

Below, we have included our general travel itinerary with links to the various groups and events where we will be attending. Jillian will be speaking at some of the events, and is available and interested in speaking at others where there is not currently a speaker scheduled, or where the group believes they would gain value from having her as an additional speaker at their event. We are not charging fees for speaking, but are simply coming to meet, network and develop relationships with east coast investors. If we are able to provide some education along the way, we are happy to do so!

In addition to the official events listed, we are leaving some time to meet with individually with new acquaintances we are making along the way. If you would like to schedule a meeting with Jillian while we are in your area, please call Ali Reynolds at 760-622-0838 as soon as possible to book a time and place or email ali@opmguru.com

We hope you will be able to come meet us at any of the listed events below (or others you may have in mind) and look forward to meeting you in person in your neck of the woods! Follow us on twitter and on our blog as we go, we will be providing video updates along the way.

*The starred dates are events where Jillian is currently scheduled to speak.

Date                    Time                 Group                  Event Link

September 8th  6:30pm          Long Island REIA www.lirea.com

*September 9th 6:00pm  New Hampshire REIA www.nhreia.com

September 10th  9:00am       NYC Commercial Forum www.nycnetworkgroup.com

*September 12th   12:00pm  DC REIA - Sherman Ragland www.dcreia.com

September 13-15th   2 days   Albany – SECounselors Meeting www.secounselors.com

*September 15th  6:00pm  Norristown REIA Group (tentative) www.meetup.com

September 16th    6:00pm        Mass REIA www.massreia.com

September 17th   9:ooam   Connect the Dots – NYC Real Estate www.bisnow.com

September 17th    5:30pm    Boston AREIA  Meeting www.bostonareia.com

September 18th   5:45pm          Rhode Island REIA www.rireig.com

September 19-21st   2 days      BERMUDA  Golf Days (Come Meet us!)

September 21st 6:00pm          MREIA – Than Merrill www.mreia.com

September 22-25    3 days  Las Vegas  “Green for Green” Seminar Prep www.opmguru.com

September 28-30  2 days    RENO Conference of Exchangers www.infoville.com

September 30th    6:00pm   San Jose REIA  – Bruce Norris www.sjrei.net

October 2nd-3rd  2 days   Capital REIA Wealth Building Expo www.capitalareareia.com

October 5th              Boston Meeting Day – we are available to meet and discuss your deals

*October 6th             6:00pm       CT REIA (date and time tentative) www.ctreia.com

*October 7th    6:00pm      Cape Code REIA www.capecodereia.com

NEW DATES BELOW!

October 12th  6:00pm  REINGUSA REIA in Nashua NY October 12th 6:00pm

October 13th  6:00pm LIREIA in Long Island NY October 13th at 6:00pm

October 14th  6:00pm   REIA OF NYC in Manhattan on October 14th at 6:00pm

October 22nd 6:00pm  Montgomery County Real Estate Group Plymouth PA

October 30th -Nov 1st 2 days       NYC Real Estate Expo www.nycrealestateexpo.com

*November 7th-8th  2 days      Optimal OPM Seminar Boston www.opmguru.com

*November 9th  – 9:00 am -5:00pm   Intro to OPM – Philadelphia www.opmguru.com

If you are looking to purchase investment real estate properties for the first time, you need to be concerned with HOW you own the real estate.  It’s easy enough to just buy property and put it in your own name, however this is not always the most prudent idea. Although real estate investing and developing can be very profitable, it also presents new liabilities leaving a property owner wide open for lawsuits against their own personal assets or other corporate assets.

The most popular trend in owning investment real estate, especially with smaller properties such as single family and multi-family properties, is ownership via a limited liability company (LLC). A limited liability company offers corporate protections without the corporate formalities. The tax consequences are usually the same as a partnership.* A limited liability company has members as opposed to shareholders in a corporation. As opposed to “officers” the limited liability company is managed by a “manager.” Instead of bylaws which govern a corporation, a limited liability company’s rules are laid out in an operating agreement.

For investors looking to really build their portfolio, you might want to consider utilizing a corporation as the manager of the limited liability company holding the property.  This way, individual properties are shielded from the liabilities of other properties while the manager (you) is further protected by the corporation as another layer of protection.

The formation would look something like this:

Limited liability companies and corporations are formed though the secretary of state of individual states. Most real estate investors are able to do this themselves. If you need a specific or comprehensive operating agreement, or are unsure of this formation, contact a corporate/ business attorney to assist you.

In my next blog, I will focus on which states are conducive for this structure and some inventive ways to make this process easier.

*Consult a Tax Professional

If you read news on print media, you’ll see that there’s a widespread of new real estate gurus and seminars…

LINK

We’re sorry you missed OPTIMAL OPM – Please join us in Las Vegas, Detroit Or Florida in coming months! Seminar Information coming soon.

PAST SEMINARS:

Optimal OPM on August 1 – 2, 2009 in San Diego

A two-day seminar for real estate investors interested in learning how to fund real estate projects without a bank, locate private money, advertise to and locate real estate investors, affordably take a company public, start a Real Estate Investment Trust (REIT), and much more.

FEES:

Admission for one:  $1995

Admission for two to four:  $1745 p.p.

Admission for more than four:  $1495 p.p.

BONUS:

Private personalized consultation with Jillian Sidoti after the event! ($125.00 value)

Anyone who attends receives a $2000 credit towards their first offering document (offers cannot be combined)

ACCOMMODATIONS: Loews Coronado Bay Resort

Breathtaking views, spa escapes and direct access to the Pacific Ocean. Everything you expect from a San Diego resort destination and so much more. Perfect your swing with a few sets of tennis, stroll along the shores of Silver Strand Beach, or escape on a romantic gondola ride. We offer everything you need to make your stay a memorable one. Click here to see the hotel website

Overview

Under Regulation D of the Securities Act of 1933, which governs private offerings, you are not allowed to do any type of general solicitation. It is also restrictive of the type of investors that may invest in your company, and the amount of money you may raise. So, if you have a private placement memorandum, and no one is biting, what is a company to do to get investors without going public? Learn How at our webinar!

You Should Attend If:

• You have a great real estate opportunity, but don’t want or need to go public
• You want to learn more about raising money for your deal
• Going ‘public’ seems like too big of a hassle
• You want to bring a group of investors together

What you’ll learn:

• Learn all the steps required to do a Regulation A filing without having to do a full blown audit of your company or comply with regular SEC reporting requirements.
• Much More!

I must hear the phrase “I am looking for investors” every. single. day.

What most innocent folks don’t know is that they are violating securities laws by uttering those very words. Now these normally law abiding citizens don’t mean to offend the SEC or their local, friendly state securities board, but unfortunately, they are, because they may just have made an offer to sell securities.

The definition for a “security” was outlined in SEC V. HOWEY CO., 328 U. S. 293 (1946):

“Under Section 2(a)(1) of the Securities Act of 1933, “unless the context otherwise requires,” the term “security” includes any note, stock, treasury stock, security future, bond, debenture, evidence of indebtedness, certificate of interest or participation in any profit-sharing agreement, collateral-trust certificate, preorganization certificate or subscription, transferable share, investment contract, voting-trust certificate, certificate of deposit for a security, fractional undivided interest in oil, gas, or other mineral rights, any put, call, straddle, option, or privilege on any security, certificate of deposit, or group or index of securities (including any interest therein or based on the value thereof), or any put, call, straddle, option, or privilege entered into on a national securities exchange relating to foreign currency, or, in general, any interest or instrument commonly known as a “security”, or any certificate of interest or participation in, temporary or interim certificate for, receipt for, guarantee of, or warrant or right to subscribe to or purchase, any of the foregoing.”

This means that any time you ask for money, that you will have control over, to gain a profit for the “investing” party, you have sold a security. It does not matter if you term it as a loan or as a “percentage of the profits.” It’s a security.

What about a partnership?

Is the individual (or company) investing as a “partner” only investing money and has no control over the company or the money? It’s a security.

What if it’s only a small investment?

It’s a security – it could be $10 – it’s a security.

What if I tie the investment to real estate?

It does not matter, if there is no control over the estate or the underlying investment, it’s a security. As a matter of fact, the Howey case that defines a security, was about land: the defendants in the case had sold one acre parcels of land to the investors. The investors were on the title of the land, but the defendants had also said to the investors “purchase this land and we will farm the land, sell the fruit from those farming efforts, and give you the profits.” This was deemed a security.

So how can a small business owner avoid such malfeasance? Well, for starters, they can attend one of my free webinars or come to one of our live seminars.  At the very least, join our email list.

What? Pay a commission? To someone? Anyone? Isn’t that illegal?

Well, kind of.

Yes, it is true that in order to sell securities you must be licensed by FINRA in order to receive a commission as a broker-dealer or an agent that sells securities on the behalf of an issuer. To find someone to do it for a startup or smaller venture is particular difficult as the major B/D’s and agents will sell only publicly traded securities or sell major projects ($25 million or more).

However, let’s say you know an individual that might have the drive to go out, network for you, and drum up some investors from their existing network, there are ways to pay them a commission for bringing you investors and selling your securities.

Here are some generalities that are not applicable to all states. You should consult with an attorney or someone in the know before attempting this. The individual selling your securities:

1. Must exclusively sell for you and your business.
2. May need to take some kind of exam in the state in which they wish to sell the securities and will be restricted to that state or those states in which they qualify. (Not all states require an exam and exemptions from exams may apply.)
3. Must fill out a form U-4, pay the filing fee (approx. $75), and have it approved.
4. Must not be otherwise disqualified from selling securities.

There is also a designation granted by FINRA for the selling of private securities. I will cover this in a future article.

If anyone or any company approaches you with an interest in funding your company or finding investors for you, be sure of the following:

1. A real, bonafide broker or agent will not charge an upfront fee for ANYTHING. The broker or agent may insist that you have a Private Placement Memorandum (PPM) written prior to fundraising, as this is required. They may want to write your PPM for a fee. Before agreeing to this, be sure they have actual experience in writing a PPM and that the fee is reasonable. (I always recommend using an attorney for such things, but hey, that’s just me.)
2. Ask the agent or broker if they are licensed and what their license is.
3. Check the broker or agent out at FINRA.org’s broker check – make sure their license is real and they don’t have any disciplinary marks.
4. Find out where they plan to search for investors.

Remember, whether you hire someone you know or someone you don’t know, their actions will have an effect on you legally. You will be responsible for how they represent your company, so choose wisely!