Understanding Master Lease Mechanics in DST Underwriting

As the DST market has grown over the past several years, the nuances of available programs have proliferated. Given the structural requirements of Revenue Ruling 2004-86, these programs do not behave like traditional real estate investments in certain respects. In our experience working with wealth[...]

Filed Under: 1031 Exchange, DSTs

Highlight Reel from FactRight’s 2024 RIA Spring Due Diligence Conference

by Kate Stephany

With March Madness upon us, what better way to celebrate then to recap some of the shining moments that happened at the FactRight RIA Spring Due Diligence Conference—and what a conference it was! 

Filed Under: About FactRight

Loan Guarantee Fees in Investment Programs: Risk Compensation or Rent Seeking?

by Kevin Kirkeby

Company owners and other executives often receive compensation for providing a personal guarantee to a commercial loan their investment program is seeking. The size of this personal guarantee fee varies considerably, as does the level of disclosure. We believe the personal guarantor should be[...]

Filed Under: Regulation A+, Regulation D, Best Practices, Private Placements

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[...]