Finally! We are Limited Market Dealers

[Anonymous]

Hello fellow real estate investors!!!!
First, let`s talk about the OSC, or the Ontario Securities Commission for a moment.

Back 7 years ago when I started investing in real estate, I always wanted to figure out how to raise syndicated capital in Ontario, the same way they do in Alberta. The #1 issues has to do with the sale and promotions of "Securities" to the general public - specifically the residents of Ontario. 2nd are various topics such as exemptions, accreditation, compliance, reporting, policies, etc.

After many attempts, we couldn`t find a solution but one - become OSC compliant! That means creating a company which is registered as an LMD - Limited Market Dealer and register any and all persons who which to promote our products.

Well, as I learned in my Power Of Focus program with Les, I need to focus on both long term and short term goals.

Today, Right Side Capital Corp. is a Limited Market Dealer!!!

A special thanks to my partners John and Chris for all their hard work and our legal teams in Ontario and Alberta.

If you have any questions about syndications, the OSC, or how to raise public money in Ontario, I am here to help, one investor to another.

 

[GSI]

Congratulations on your success Mark! You must feel a great reward has come from all the hard work and focus you have put towards that goal. Wonderful to hear that is is now a reality.
Todd-


QUOTE (MarkGarrett @ Apr 2 2009, 04:04 PM) Hello real estate investors!!!!

Let`s talk about the OSC, or the Ontario Securities Commission for a moment.

Back 7 years ago when I started investing in real estate, I always wanted to figure out how to raise syndicated capital in Ontario, the same way they do in Alberta. The #1 issues has to do with the sale and promotions of "Securities" to the general public - the residents of Ontario. 2nd are topic such as exemptions, accreditation, compliance, etc.

After many attempts, we couldn`t find a solution but one - become OSC compliant! That meas creating a company which is registered as an LMD - Limited Market Dealer.

Well, as I learned in my Power of Focus program with Les, focus on both long term and short term goals.

Today, Right Side Capital Corp. is a Limited Market Dealer!!!

A special thanks to my partners John and Chris for all their hard work and our legal teams in Ontario and Alberta.

If you have any questions about syndications, the OSC, or how to raise public money in Ontario, I am here to help, one investor to another.

 

[Thomas Beyer]

Congratulations Mark !

What does the term "Limited Market Dealer" mean ?

what specifically can you do in ON that you could not do before ?

Do you raise $s for others, if so, what $ amount and asset class ?

Or do you do your own real estate deals only ?

 

[TodorYordanov]

Congratulations Mark!

I hope one day I understand what all of that means

Seriously, thanks for alway being eager to help and teach.

Todor

 

[GarthChapman]

Congrats Mark! It sounds like this will take your business to the next level.

 

[Anonymous]

QUOTE (GSI @ Apr 2 2009, 08:40 PM) Congratulations on your success Mark! You must feel a great reward has come from all the hard work and focus you have put towards that goal. Wonderful to hear that is is now a reality.

Todd-


Thanks for you comments

 

[Anonymous]

Hi Thomas, Thanks for your comments...

QUOTE (thomasbeyer2000 @ Apr 2 2009, 09:23 PM) What does the term "Limited Market Dealer" mean ?

A Limited Market Dealer is a company AND an individual who is registered with the various provincial securities commissions (IE The Ontario Securities Commission - OSC). The act of registering is a daunting task but will now provide allot of opportunities to promote real estate investment options not available to many people.

Why would a REIN member want to register with the OSC?
1) If they want to promote Limited Partnerships, RSP eligible syndications
2) Want to earn a commission for the raising of capital for syndicated investment products.

Please note, this does not relate to the standard Joint Venture which is the staple of most REIN member fund raising activities.

What`s involved at a high level?
a) Setting up a LMD company (3 - 6 months and approx $40,000)
b) Registering as sales agent for / under an LMD company.
c) Strictly adhering to the guidelines and policies of the company to ensure 100% compliance with the OSC

Then, you need to develop the correct legal offering documents called Offering Memorandums.

All total, we have invested about $250,000 and almost 11 months to get to this point.


What if you don`t do this?
1) you can be fined
2) Your company could be required to stop business
3) Your investors may be subject to penalties if certain investor qualifications were not met
4) Restrictions on future business activities


The key thing is, if you are intending on syndicating projects for raising investment capital in Ontario, it is highly recommended to follow the OSC guidelines. You have to be committed to raise between $10M - $20M within the first 2 years or it`s simply not worth the investment.


QUOTE (thomasbeyer2000 @ Apr 2 2009, 09:23 PM) what specifically can you do in ON that you could not do before ?

Great question!

For those of you who are considering creating syndicated investments, there are many considerations but for this conversation the key consideration is the promotion of the investment opportunities.

Before: we could only promote to individuals who qualified for a "Private Issuers Exemption"

Today:

• We can create and promote our own syndicated funds.
• We can create investment products which are RSP and TFSA eligible. Now there is another option for RSP capital other than 2nd mortgagesWe can partner with other groups to create investment projects to take to marketWe can promote and sell other company`s investment offerings - obviously we would need to ensure many details and that the issuers are following the REIN system

QUOTE (thomasbeyer2000 @ Apr 2 2009, 09:23 PM) Do you raise $s for others, if so, what $ amount and asset class ?

Or do you do your own real estate deals only ?

We can definitely promote for other groups. The key for us is that they are following the REIN principals. Further, any group who wishes to be represented in Ontario will require that their Offering Memorandums be modified to ad-hear to the OSC guidelines. It`s not difficult, just requires the knowledge of what to do.

They key for us is that we will not cannibalize our current offerings.

 

[Anonymous]

QUOTE (TodorYordanov @ Apr 3 2009, 08:51 AM) Congratulations Mark!

I hope one day I understand what all of that means

Seriously, thanks for alway being eager to help and teach.

Todor


Thanks for the kind words...

simply put, it means that we are now allow to promote syndicated funds using public channels without fear of breaking any of the OSC rules! If you want, i would be more than happy to explain how OSC works and why this is a major mile stone in our company`s history.

Have a fantastic day!

 

[Anonymous]

QUOTE (GarthChapman @ Apr 3 2009, 01:52 PM) Congrats Mark! It sounds like this will take your business to the next level.

Much like REMA has been a multi-year evolution, so has this. I remember first exploring OSC compliance back in 2005. And also like REMA, we have invested the time and energy to ultimately help the REIN community and fellow investors.

Thanks for your support over the years! Your one of the great ones!

 

[Thomas Beyer]

are you saying that ON investors do NOT have to be accredited if they invest real estate syndications via an offering memorandum (like ours) if they are advised by you / sold by you ?

 

[Anonymous]

QUOTE (thomasbeyer2000 @ Apr 4 2009, 06:10 PM) are you saying that ON investors do NOT have to be accredited if they invest real estate syndications via an offering memorandum (like ours) if they are advised by you / sold by you ?


There are various exemptions that can be utilized up but it requires a new set up OMs and an agency agreement with a registered LMD.

 

[Gerhardt]

Congratulations Mark and Right Side Realty!! I know this has been something you have worked at and it is really nice to see you succeed. Good luck with it! Hopefully we`ll see you out in Alberta again soon!

 

[NorthernAlex]

Congratulations Mark!

It is so interesting to learn and read every day something new in the forum here.

(PS: Would you mind to decrease the size of your signature a bit? It is sooooooo BIIIIIG).