Hey, everybody. My name is John Fischer. Welcome to salesleads.TV. We’re going to talk about private place and buyers. And what we’re going to do is we’re going to take a look at what artificial intelligence has to say.
I’m going to critique them and I think I have the right to do so because I’ve been doing this for 32 years and they may have artificial intelligence, but I’ve got the real deal and let’s see how close we are.
I’m going to go ahead and see what they got to say. I’m going to critique it and agree or disagree? Here we go. If you’re looking to raise capital through a private placement offering, finding potential buyers can be a challenging risk task.
Private placements are securities offerings that are not registered with the Security Exchange Commission and are only available to limited number of qualified investors. Here are some of the ways to find potential private place and buyers.
Investment banks. Investment banks can help you find potential private placement buyers through their network of investors. Investment banks can also provide valuable advice on how to structure your offering to appeal to investors and help you navigate the regulatory requirements.
I disagree. Investment banks won’t give you the time of day, for God’s sakes. And they may want to do it themselves, but the problem with these guys is they have their own clientele. What do they need you for?
And they want so much of the back end. I disagree. Broker dealers. Broker dealers are licensed to buy and sell securities on behalf of clients. Many broker dealers have a network of high net worth individuals and institutional investors who may be interested in private places.
I agree. However, it’s important to work with broker dealers who aren’t registered with the SEC, aren’t income with relevant regulations. Again, why the hell would they let you in? And then how much are they going to ask of the back end?
They’re going to want back end stock. They’re going to charge you $25 to $50,000 for due diligence and we’ll do the deal. I mean, that’s the big trick with. With these broker dealers. They say, well, you haven’t got to come up front with 25 or $50,000 for us to do our due diligence and go over your deal before we offer it to our clients.
And then they’re going to say, we want this much of the back end, we want 10%, 20%, 30% of the back end, unless it’s a super big deal and it’s like a 50 million type of deal. I’m going to tell you something right now.
If you’re doing a five or 10 million raise, you have no reason to be going near any kind of a broker dealer. And that’s my opinion. Accredited investor Databases now we’re talking accredited investor database such as Angel List Seed, Invest, Gust can provide access to a pool of accredited investors who are interested in private placement opportunities.
These databases allow you to create a profile and pitch your offering potential to investors. Again, they got some big fees, number one. Number two, you got to pay to even get on the site. And I’ll tell you what, I don’t know those three particular sites.
I have heard of Angel List. I’m not sure I’ve heard of Steve List or Gus. I’ve never heard of Gus. But the problem with these is they charge you money to come on board. If I don’t know anything about something, I’ll tell you I don’t know anything about something.
But I got to tell you that I don’t like this whole thing of you come to their website and then they’re going to go ahead and have their investors, their angels, look at yours. I’m tainted, I’m jaded.
Because in the past I know two or three guys that were doing this and ripping people off. They had shills. They would say, oh yeah, I’m definitely interested. And they said, well, we’re going to give you five people to talk to.
And if you like what you hear, well, let’s go ahead and sign the contract. And then they sign the contract and they charge you X amount of dollars. Now you sign the contract, you paid your upfront fees, and turns out those five guys were shills.
They weren’t even real people. So you got to be very careful with that. Professional services consulting with a financial advisor, investment bank, or attorney who has experience with private placement can provide you valuable inside connection with potential investors.
These professionals can help you navigate the regulatory requirements to ensure that your offer complies with all relevant laws and regulations. This is that artificial intelligence gibberish mean? What did they just say to us?
It looks like they just want to crank up words here. An investment banker or an attorney is not going to get involved with your private placement unless he charges you big upfront fees. He’s going to want to write the private placement memorandum for you, and it’s already been written.
I love it when a guy doesn’t have a memorandum in his database and then he charges you $10,000 to write it. If someone’s already blazed that trail, why do you have to pay for him to figure it out? There’s plenty of companies out there that have been offering private placement memorandums and doing it for a while that you could check out, make sure they’re credible.
And why should you pay somebody to do all the research on something that’s already been researched? And what I love about the lawyer how do you know when a lawyer got hit by a car? No skid marks. I love it that they charge you to write the private place of memorandum and then they call me up and they say, oh, yeah, I got a lawyer.
How much? He charges $10,000. No kidding. So what did he recommend? He recommended a 506. I said, 506 b or c? Hold on, let me look at my memorandum. It’s A-B-I said, why would he do A-B-I said, do you know the b?
You have to have preexisting relationships with people and anyone knew that. You don’t know there’s a 30 day cooling off period. You can’t send these guys a private place of memorandum for 30 days. There must be a mistake about that.
Well, did the guy tell you about the do not call the federal trade commission? Do not call? No. What is that? Well, there’s a sand number and then there’s 250,000,000 people on a do not call and you got to register.
No, he didn’t tell me that. I said, well, you know, did you already pay the lawyer? He goes, yes, I did. I said. Well, look, I don’t want to get between you and your attorney, but do me a favor, call him back and ask him.
Hey, why didn’t you tell me to do a reg d five oh six C, as in Charlie, where I’m allowed to solicit, don’t have to worry about the cooling off period, pre existing relationships, and I have permission to solicit.
Why didn’t you give me that? Hey, why did you tell me about the sand number? You know, so are the kind of things I run into as a list broker. Got to be careful, network attending industry events. Yeah, that sounds like fun.
But again, you know what, to meet somebody. I mean, some people do seminars which are cool. They’ll call me up and say, hey, John, I want a 50 miles radius of the city of Orlando. We’re going to be in such and such hotel.
We’re going to do a dinner. We want to call these people up, qualify and make sure they’re accredited, invite them, and that works. Problem is, if you don’t do an RSVP 48 24 hours before and no one’s going to show up, they’re going to forget or they’re going to find some kind of excuse and then you got plate liquors.
I get those things all the time down here in Florida and Morton Steakhouse and root steakhouse. And the tendency is what we call plate liquors. They go to have the meal, but they have no intention whatsoever of doing any kind of investment.
So you got to be careful when you send those invitations out. That’s pretty expensive. That’s like a $60.70, $8100 lead. And most of the time they’re going to come with somebody. So it’s going to be like you taking a $200 shot.
Not to mention renting the hotel room and renting or the hotel hall, paying for the meal, having your people show up, and can be quite expensive. It works, though. It works. If managed properly, it does work.
And now comes the artificial intelligence cya. Cover your tushy. When pitching your private placement, offering to a potential investor is important to have well crafted investment presentation. That highlights the strengths of your business investment opportunity.
Your presentation should include a clear description of your business investment opportunity. You should also be prepared to answer questions. Yeah, no kidding. It’s important to note that private places are highly regulated.
And here comes the compliance or the risk disclosure. Look guys, now I’m going to give you the simple answer, okay? Private place of buyers. How do you find private place of buyers? You go to Salesweeds TV and you ask about their accredited investors.
These accredited investors have been called vetted by a broker dealer. They’ve been pitched their deal. And before they send a private placement memorandum, they ask them, do you make at least $200,000 a year for the last two years or $300,000 combined?
Have you got a million net worth not including your home? Have you got experience in managing your personal portfolio? Do you see any reason why your income levels should go down? Should you consistently be making this kind of money next couple of years?
And then that right there takes care of the Security Exchange Commission, their actual definition. Now they take it a step further. They say, hey, by the way, which of the following is a comfortable entry level for a first time investment?
25, 50 or 100? Or they may say, hey, is 25 or $50,000 a comfortable entry level for a first time investment? And then they say, hey, by the way, is this risk capital? And then they mail him a private place of memorandum and you’re paying $0.50.
So it just doesn’t get better than that. As far as disconnect wrong numbers would be placed in two for one jerks. Sometimes he had a bad night and now you call him up and he’s is going to beat you up.
I mean, this business is not perfect, guys. It’s a numbers game. And the bottom line is this has traditionally been how this money has been raised for years and years and years. The do not call something we got to take a look at.
Federal Trade Commission. If you have a sand number, I’ll scrub for you. I’m a service provider. If you don’t have a sand number, we’ll get one for you. You’ll pay the actual price. We’ll get you on the computer, and we’ll show you how to do it.
If you don’t want to get a sand number, then you’ll sign my indemnity form. I don’t have a sand number. I’m not allowed to scrub without someone’s sand number. Your sand number. And and also, there’s a lot of states that I will not sell you.
I think they’re highly regulated, and you shouldn’t be doing business in them. I’m talking about Pennsylvania, Montana, South Dakota, North Dakota, Hawaii, alabama on California. California got smart two or three years ago, wanted to put a portal on my website and allow California residents to opt out of me selling their name.
I really don’t want to have anything to do with California. I mean, those people can’t take care of themselves. How they got to come even near my company, and I just don’t like California. It was a lot of leads, and I lost a lot of money not selling California residents.
But I got to tell you, God bless. I finally got my brother to move out of California. Don’t get me going politically. You guys have any questions at all? Yeah, I’m a patriot. Give me a call. Five, six one.
You don’t like patriots, and you don’t like the orange guy. Maybe you shouldn’t do this with me. I definitely don’t like what’s going on with this world right now, and I don’t like what’s going on in my country, and I certainly don’t like what’s going on with the oil and gas.
You guys have smashed this business. I mean, it’s just terrible what’s happened to my oil and gas guys. Hey, you want to call me up and talk about politics? Let’s have some fun. 561-2390 you want to make some money, give me a call, and let’s buy some leads.
561-239-0364. Have a beautiful day, and God bless.