In this eye-opening episode, Discover how Tim Mai hosts Mauricio Rauld, one of the real estate industry's top SEC attorneys, reveals the 5 must-know rules every fund of funds manager needs to stay out of jail.

From understanding the critical distinctions between securities and real estate investments to avoiding costly mistakes like disguised commissions, Mauricio delivers expert insights with practical strategies to keep your fund compliant and thriving.


Key Takeaways to listen for:

1. Understand the Critical Distinction Between Real Estate Funds and Fund of Funds: Transitioning from real estate investments to securities introduces new compliance obligations under SEC regulations, fundamentally changing the rules you must follow as a fund manager.
2. Navigate Investment Advisor Registration Requirements: Fund managers advising on securities must evaluate whether they need to register as investment advisors based on their state’s laws, ensuring they comply with exemptions or registration requirements to avoid legal pitfalls.
3. Avoid the Broker-Dealer Trap: Never accept transaction-based compensation tied directly to the amount raised, as this is a hallmark of unlicensed broker-dealer activity that could lead to SEC scrutiny and penalties.
4. Add Value Beyond Raising Capital: To differentiate yourself from being classified as a broker, provide value to investors by conducting due diligence, negotiating better terms, and offering opportunities they wouldn't access otherwise.
5. Stay Aware of Investment Company Regulations: Exemptions like the 3C1 rule (limiting investors to under 100) are essential for avoiding burdensome compliance with the Investment Company Act when structuring your fund.

About Tim Mai

Tim Mai is a real estate investor, fund manager, mentor, and founder of HERO Mastermind for REI coaches.

He has helped many real estate investors and coaches become millionaires. Tim continues to help busy professionals earn income and build wealth through passive investing.

He is also a creative marketer and promoter with incredible knowledge and experience, which he freely shares.

He has lifted himself from the aftermath of war, achieving technical expertise in computers, followed by investment success in real estate, management skills, and a lofty position among real estate educators and internet marketers.

Tim is an industry leader who has acquired and exited well over $50 million worth of real estate and is currently an investor in over 2700 units of multifamily apartments.

Connect with Tim

• Website: Capital Raising Party
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