top of page
Vector 19_edited_edited_edited.png
Vector 19_edited_edited_edited_edited.png
Search

Broker-Dealer Services for Real Estate Sponsors

  • Writer: Sara Judd
    Sara Judd
  • Oct 20
  • 2 min read
Broker-Dealer Services for Real Estate Sponsors

If you're a real estate sponsor seeking to raise capital through private placements, working with a broker-dealer may support your efforts. Broker-dealers assist in navigating securities regulations, supporting compliance efforts, and facilitating introductions to potential investors. In this overview, we’ll explore what broker-dealer services involve, their role in real estate offerings, and considerations for selecting the right partner.


Broker-dealers are firms registered with the SEC and FINRA that facilitate the buying and selling of securities. In the context of real estate, they may assist with structuring offerings, such as those conducted under Regulation D Rule 506(b) or 506(c). They also help ensure marketing materials comply with applicable regulations. Their knowledge of regulatory requirements can help guide sponsors through necessary documentation and assist with SEC and FINRA filing obligations. Investor due diligence, such as KYC, AML, and accredited investor verification, is also a service commonly performed by broker-dealers in connection with fundraising efforts or offered as an à la carte service.


Broker-dealers may also help broaden access to accredited investors. Less common, but certain brokers may have also established networks and platforms that can facilitate introductions to individuals or entities with an interest in private real estate offerings. This expanded outreach may support capital-raising efforts, particularly for larger projects.


If you’re looking to build out your own internal sales force and pay commissions for the sale of securities, certain broker-dealers can sponsor your team’s licenses and provide compliance support for their fundraising efforts. 


It's important to work with a broker-dealer that understands the real estate sector. Not all broker-dealers specialize in this space, so it’s worth identifying firms with relevant experience and familiarity with the regulatory landscape applicable to real estate offerings. This expertise is important, as delays or missteps can affect whether a real estate transaction closes successfully.


Engaging a broker-dealer can provide support across key aspects of a capital raise, including regulatory compliance and investor onboarding. Conducting due diligence when selecting a broker-dealer can help ensure alignment with your project needs and offering structure.


Sources:

 
 
 

Comments

bottom of page