Raising Capital the Right Way: Inside Real Estate Syndications with Nic McGrue

📘 Overview

This episode of the Generations of Wealth Podcast takes a deep dive into one of the most misunderstood and risky areas of real estate investing: raising capital legally. Derek Dombeck is joined by SEC and syndication attorney Nic McGrue, founder of Polymath Legal, who has helped clients raise and acquire over $2.5 billion in assets.

Together, they break down how syndications really work, the most common (and dangerous) mistakes investors make when raising money, how the SEC views joint ventures, social media marketing, finder's fees, and what investors must have in place to stay compliant while building generational wealth.

⭐ Key Takeaways

• Most capital-raising mistakes come from ignorance, not bad intent — but the penalties can be severe.

• Joint ventures are often misused and do not replace proper securities exemptions.

• Social media capital-raising is risky when returns, guarantees, or deal specifics are shared publicly.

• Syndications require specific legal documents, including operating agreements, PPMs, and SEC filings.

• PPMs protect operators as much as investors by clearly disclosing risks.

• 506(b) vs. 506(c) matters — pre-existing relationships and accreditation rules change everything.

• Second-position capital is extremely risky, especially in distressed markets.

• Market downturns expose weak operators and reward disciplined, compliant ones.

 

💬 Relevant Topics Discussed

• What legally defines a real estate syndication

• Syndications vs. funds — where investor money really goes

• Equity vs. debt structures and investor risk

• Common SEC violations investors don't realize they're committing

• Why posting returns on social media is dangerous

• PPMs, operating agreements, and SEC filings explained

• Accredited vs. sophisticated investors

• Finder's fees and why commissions are a legal landmine

• Market cycles, distressed assets, and future opportunities

 

🎧 Why Should You Listen?

Listen to this episode if you:

• Plan to raise private money or capital for deals

• Want to avoid costly legal mistakes in syndications

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