Kim Lisa TaylorSecurities Attorney, Founder, Syndication Attorneys, PLLC · Corporate Securities Attorney, 2x Best-Selling Author, Nationwide Speaker | Private Placement

Why You Shouldn’t Take an Investor’s Last Dollar

16 Sept 2024 · 1 min

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In this advisory talk, the speaker warns against accepting an investor’s final funds because a loss could financially devastate the client. He emphasizes the need to ask detailed financial‑status questions and to document those answers before presenting any investment opportunity. A substantive, documented relationship must be established prior to any offer, ensuring the advisor already knows the client’s situation. After this groundwork, a follow‑up can be made—e.g., contacting the client the next day with a suitable opportunity—provided the prior relationship and documentation are in place.

Chapters

And you don't want to take their last money because if something happens and it goes wrong, they could be financially devastated and not able to recover. So you've gotta, you know, kind of ask them those questions and you need to let 'em know, I'm just required to know these things before I could offer you specific investment opportunities. Now you go home, you document it, you've got the established relationship, you've got the substantive relationship. That relationship has to predate your offer. That means that you knew that about that person before you started offering them investment opportunities. Now, could you follow up theoretically the next day and say, okay, well, you know, now that we've had this conversation, I do have something I think would be suitable for you. I'm going to go ahead and send that over.