FactRight Takes Salt Lake City

by Kate Stephany

*Olympic Trumpet flair*

Filed Under: Due Diligence, Alternative Investments, About FactRight

Navigating the Cap Rate Landscape: How Real Estate Cap Rates Relate to Real Interest Rates

by Jeff Baumgartner

With limited success for centuries, astronomers charted the stars with hopes of better understanding the universe until one day when Copernicus suggested that the earth was orbiting the sun. Once his epiphany was fully understood, empires could navigate the globe with unprecedented precision by[...]

Filed Under: Due Diligence, Real Estate, Alternative Investments

FINRA Regulatory Notice 23-08: Building on Regulatory Notice 10-22 to Develop More Robust Due Diligence of Private Placement Offerings

by Jacob Heidkamp

FINRA recently released Regulatory Notice 23-08, which provides a reminder to FINRA members of their reasonable investigation obligations when selling private placement investments to their clients under Regulation D. The Regulatory Notice marks FINRA’s first substantial discussion of due diligence[...]

Filed Under: Due Diligence, Best Business Practices, Alternative Investments, Best Practices

Not All Units Are Created Equal in Broker-Dealer and RIA-Distributed Investment Programs

by Gail Schneck

This blog looks at what unit pricing in an investment program offering means to your investors and how to determine whether such pricing treats all investors “fairly.”

Filed Under: Due Diligence, Best Business Practices, Alternative Investments, Best Practices

Highlights from FactRight's 2023 RIA Spring Due Diligence Conference

by Sarah Thommes

We say this every conference, but we are so beyond grateful to all of you for making this Spring RIA Due Diligence Conference in beautiful Scottsdale, Arizona such a success! With over 350 total attendees, the FactRight staff cannot be more appreciative of your continued support and participation.

Filed Under: Due Diligence, About FactRight

Due Diligence Considerations: the Continuum from Conflicts of Interest to Alignment of Interests

by Julie Olsen

Alternative investments programs involve many conflicts of interest, and offering documents often have an entire risk disclosure section dedicated to this issue. But not all conflicts are the same and vary by product and sponsor. Assessing conflicts really come down to two central questions:

Filed Under: Due Diligence, Best Business Practices, Best Practices

What a High Home Prices-to-Income Ratio Could Mean for Residential Real Estate Programs

by Steve Sims

Over the past several years, FactRighthas seen a trend in increased demand for residential real estate investment programs (e.g., multifamily, build-to-rent, single family residences).While our offering-level reports provide a market overview at the MSA-level, I wanted to goa few levels higher to[...]

Lapses in Due Diligence and the Collapse of FTX: How Could so Many Have Missed so Much?

by Jeff Baumgartner

By now, you may be generally familiar with the recent collapse of FTX, and some of the reasons for its failures are obvious. But by examining FTX side-by-side with perhaps the most infamous investment fraud ever perpetrated, we can discover some keys as to why lapses in due diligence may never be a[...]

Filed Under: Due Diligence, Best Business Practices, Best Practices

All Preferred Shares Not Created Equal – Why FactRight Incorporates Scenario Analysis in our Analysis of Preferred Securities

by Kevin Kirkeby

It should come as no surprise that the old investment adage about getting what you pay for holds true for preferred stock, too. Despite often being pitched as a bond alternative, especially lately, there are multiple factors beyond dividend yield to consider. Among the features, an investor needs[...]

Filed Under: Due Diligence, Best Business Practices, About FactRight, Best Practices

How to Assess Affiliated Transactions in Private Placement Programs

by Kemp H. Hanley

Affiliated transactions can be thorny. They raise conflicts of interest and create additional governance challenges and risks. The relative fiduciary duties (or lack thereof) that the manager owes to each side of the transaction complicates the picture. Investors are understandably apprehensive[...]

Filed Under: Due Diligence, Alternative Investments, Best Practices, Private Placements