You can’t use an agreement to get compensated for raising money for others unless:
a) You have a securities broker-dealer license (not a real estate broker’s license) or
b) You, the opportunity and all investors are in California, where you can use a real estate broker’s license for this purpose or you can apply to the state to be a licensed “finder.”
Bottom Line: Unless you are in California, you must qualify for the “Issuer-exemption” that allows you to sell securities without a securities license. In order to do so, you have to be a member of the company that is selling the securities and do so under an appropriate securities exemption, such as Regulation D, Rule 506(b) or Rule 506(c).
We get potential clients who reach out to us every week who want to start a fund. While we could simply take their money and set them up with fund offering documents, we actually talk a lot of people out of doing a fund. Why? Because they don’t have the necessary...