Securities laws - Posted by MDonovan FL

Posted by CarolFL on April 08, 2000 at 18:00:02:

This sounds like the kind of ad that John tells about running … first call from it was from the SEC!

I’ll see if I can find anything about it in the achives, or his misc Paper Posts on his website, and post the references.


Securities laws - Posted by MDonovan FL

Posted by MDonovan FL on April 08, 2000 at 12:57:04:

When advertising for private money loans against my notes, where is the line to avoid securities laws? I’ve always thought that there would have to be a syndication before these regulations apply, but I would like to look before i leap. Ignorance is no excuse and all…

Example, classified ad:
HIGH YIELDS - Investor seeking private funds
to be secured by real estate. Cash in your
CDs and make some real interest.

I would presume that as long as each private loan was secured by one or more notes, then I would not fall under the security regulations. If I had more than one private loan for any note, then I WOULD have to comply with the regs. Right?

And is it OK to advertise your own notes for sale? I am not a broker.

Re: Securities laws - Posted by Brian Mac

Posted by Brian Mac on April 10, 2000 at 11:45:29:

Publicly soliciting for investor funds subjects you to securities regulations. Selling something you own, or have the right or option to sell, does not. As far as I know, nor does borrowing from someone privately. It is more prudent to find your investor funds through introduction of some kind and borrowing, rather than soliciting to invest. Seek proper counsel in the matter, this could be completely wrong.