RG 120 – The Secrets of Successful Real Estate Syndication with Gene Trowbridge
About Gene
- Gene qualified as a lawyer at 45 years old
- Gene is a syndicator
- Gene is the managing partner at Trowbridge Sidoti LLP
Nuts and Bolts
Gene is an experienced investor specializing in both residential and commercial property, he is also a syndicator and has sponsored 16 funds doing management and self storage. Gene has raised money through his SCC brokerage network and is a senior instructor for CCIM courses on investment analysis and decision making. Gene is a managing partner of Trowbridge Sidoti LLP, a wealth first for syndication and crowdfunding. He is also a law partner and between him and his partner he looks after 320 clients, he has authored security documents for over $1.5 billion worth of equity raised since 2014. Gene made his first dollar when his father lent him money to buy a lawn mower/snow blower combination machine and he went house-to-house selling his services.
When Gene was in college he completed courses in finance, accounting and marketing and wanted to be a salesman. Unfortunately he couldn’t sell big things like aeroplanes as he wasn’t an engineer so he sold houses but found he wasn’t very good. He took a further accounting course and learnt the commercial side and sold commercial real estate. He then decided to buy some and went down the route of a syndicator which he turned into big business. After 20 years he was worn out and shut down the money-raising side of the business. Gene went back to school and graduated with a law degree at 45 years old, he stayed in real estate as a mentor and syndicator but mainly worked in the law.
Securities are similar to syndication but the main difference is who is in charge of the money. Syndication is combining money with one or many other people so that you can do something you couldn’t on your own. When you take charge of someone else’s money it becomes a security, the money is invested in a common enterprise for a profit but you are the decision maker.
Previous to 2012 all securities need to be registered with the SEC unless they are exempt, regulation D is the exemption rule and it pertains to people who don’t need protection if raising money with a maximum number of people and a maximum amount of money. Also previous to 2012 you weren’t allowed to advertise your security, so money raising was all done between friends and contacts. After 2012 with the change in the Jobs Act the SEC decided promotion was needed for capital formation. This meant that they allowed advertising of securities as long as the owner has taken steps to be reasonable assured that all of the investors are accredited. Accreditation is confirmed if you have a net worth in excess of a million dollars, not counting your primary residence, or if you’re a single tax payed with over $200,000 gross, or if you’re married and filing jointly and have $300,000 gross income.
Top Tips:
- Most important habit – Working in teams and starting the day right
- Most influential person – Himself
- Most important tool – Ongoing education
- Contact – crowdfundinglawyers.net and gene@crowdfundinglawyers.net