Exempt Market Dealers for Real Estata
In Canada I am seeing more and more Exempt Market Dealers popping up. An exempt market dealer is a limited form of securities dealier license, so think of a typical securities dealer, like BMO Nesbitt Burns, or TD Waterhouse....an EMD is a light version of the same license. What it typically permits the dealer to do is sell securities that are not prospectus registered, or unlisted, pricate, etc. such as a mortgage fund.
Generally speaking, to raise money for such investments you ahve to rely on one of the exemptions available under securities law for issuing non-public shared, units or debt instruments. There are several available exemptions, but the most common is the "accredited investor" exemption. This one says that you can sell to people who are wealthy enough to know to protect themselves from unscrupulous actors. Yhey define accredited investors as people who have either liquid net worth greater than $1M, net worth greater than $5M, or income greater than $200k per year. Another popular exemption is available for investors making an investment of at least $150k. The dealer is responsible for knowing the client and ensuring that the investment is suitable for the client, meeting his risk tolerances.
The biggest benefit is the NOT HAVING TO FILE A PROSPECTUS!!!!!
~Alexandra Rebagliati
In Canada I am seeing more and more Exempt Market Dealers popping up. An exempt market dealer is a limited form of securities dealier license, so think of a typical securities dealer, like BMO Nesbitt Burns, or TD Waterhouse....an EMD is a light version of the same license. What it typically permits the dealer to do is sell securities that are not prospectus registered, or unlisted, pricate, etc. such as a mortgage fund. Generally speaking, to raise money for such investments you ahve to rely on one of the exemptions available under securities law for issuing non-public shared, units or debt instruments. There are several available exemptions, but the most common is the "accredited investor" exemption. This one says that you can sell to people who are wealthy enough to know to protect themselves from unscrupulous actors. Yhey define accredited investors as people who have either liquid net worth greater than $1M, net worth greater than $5M, or income greater than $200k per year. Another popular exemption is available for investors making an investment of at least $150k. The dealer is responsible for knowing the client and ensuring that the investment is suitable for the client, meeting his risk tolerances.
The biggest benefit is the NOT HAVING TO FILE A PROSPECTUS!!!!!
~Alexandra Rebagliati
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Alexandra Rebagliati
Owner/Managing Broker
Office: 778.484.5253
Fax: 778.484.5252
Cell: 250.870.2792
Alex@LakeOkanaganRealty.com
www.LakeOkanaganRealty.com