Hello Stanley,
A friend are going to start a finders network, where we provide introductions for those seeking funding with those who are able to provide it. Whether it's real estate, Ai, or anything in between our goal is to help those who are seeking funding. We want to figure out the best way to do this as well as the legal requirements to do so. We have received legal advice that said, " A “finder” cannot receive a success fee or commission (i.e., a percentage of funds raised only upon success) unless it / they have the proper license for the respective funding activity: securities, loans, real estate sales. For example, for the sale of securities, the finder would need to be registered as a broker-deal (or be a registered representative currently acting as an agent on behalf of a registered broker-dealer). Such registration is dictated at the federal level by the SEC and FINRA and may also be required at the level by the various state securities laws (Blue Sky Laws). There are certain very limited exemptions, but typically only apply in the M&A context for the sale of at least 25% control of a company. For the placement of loans or the sale of real estate (both commercial and retail) there are similar federal and state prohibitions—different laws, different license requirements, but similar prohibitions against commissions or success fees."
With all of this in mind, we would like to know what our roadmap would be. Ie. What licenses we need to obtain.
We have considered perhaps doing consulting instead of doing introductions, where we would charge an hourly rate, plus bonuses for certain phases being completed including a closing clause, but honestly, we're not sure if that would work legally. So these are a few of the questions that we have for you. Would you be able to answer them?