Your WEBSITE is the 1st thing the SEC will look at if they think you are doing something wrong!
AND
If you advertise on your website to find private lenders without registering your security, you could get in a TON of problems.
At least that is what I’ve been told by my SEC attorney.
I’ve seen some real estate investor’s websites where they put information about borrowing money from private lenders. Just so you know, I’m not an attorney nor do I provide legal advice. So I had to ask an attorney what were the parameters on putting this information on websites.
What he told me was that advertising to attract private lenders on a website was a violation of the SEC guidelines in every state (and Canada) unless the real estate investor has registered with their state’s Division of the SEC. Plus if you are doing business in more than one state, you also need to list any state you want to attract private lenders. Done wrong, you could get in serious trouble.
Let me repeat that…
- Advertising in every state is not allowed unless you are registered with your States SEC office. Seeking private lenders via your website is considered advertising.
To a real estate investor and especially a new investor, they believe they can just go advertise to find private lenders. Heck, with the internet, eBay and Craig’s list it would seem like the logical thing to do. They also see ads from banks and other lending institutions so it should be ok. One of the saddest things I’ve seen is a real estate trainers telling their students to go advertise.
But you CAN’T ADVERTISE TO FIND PRIVATE LENDERS UNLESS YOU REGISTER.
I could see a disconnect between what is required by the SEC and the lack of understanding – knowledge by real estate investors.
I had an idea.
To help real estate investors out, and resolve this disconnect, I asked my SEC attorney if he could create a website template for each state for each different scenario so folks could be in SEC compliance and utilize their website properly.
He came up with three separate simple templates for each state.
The first template is for real estate investors that are in an exempt category and can only borrow money from folks that they have a prior relationship with, that live in their state and the money is invested in their state.
The second template is for the folks that have registered with their state’s SEC so they can advertise to attract lenders within their state for investments within their state.
The third template is for the folks that have registered and are crossing state lines.
Now you only need to post one of the templates but since over time you could move from one scenario to another, we just package them ALL in one zip file to download. So if things change in the future, you are covered and can just load the next template when you are ready.
The templates he created are in an HTML page that you can post to your website that clearly explains what level you are in for your state so that you stay in compliance with the SEC. You get all three templates for your state so you can pick the one for you, fill in your company name and you’re good to go.
WARNING: If You Don’t Take This Easy Step to Stay in SEC Compliance Things Could Get Real Ugly, Real Fast!
Did you know that if you don’t post the proper disclaimers, the SEC could notify all your private lenders and tell them you are not in compliance … or worse they could issue you a cease and desist order … or still worse they could charge you with fraud?
Well, they can do all of the above and much more. That’s why it’s important that you take the easy steps required to stay in SEC compliance – and quite possibly the easiest step you can take is to download our website disclaimer for your state!
Here’s the bottom line:
I believe that using private lenders is “The” way to go when you need funding for your real estate deals. It’s the best, easiest, and least expensive way to fund your deals. That’s why many of the rich successful national real estate speakers use private lenders.
What you have to do is stay in SEC compliance, which is not hard to do, it starts with having the right disclaimers on your website. So don’t delay, click on your state in the map on this page today!
- Templates 2 & 3 website disclaimers are for those of you that registered.
- Template 1 website disclaimer is a must for folks that are not registered.
So everyone is covered.
It is definitely worth the very minimal cost to be safe and to be able to sleep worry-free at night!
To Help Ensure You Stay in SEC Compliance the Fast, Easy, Inexpensive Way…
Download The Attorney-Prepared WEBSITE DISCLAIMER for Your State!
Trust me, you don’t want to get on the SEC’s bad side, and if your website currently has a page on private lending (without the necessary legal disclaimers) you could be at risk of doing just that!
But luckily for you, my SEC attorney came up with an easy fix.
Dirt cheap at $35.00
Simply click on your state in the map on this page and then click the blue info icon when it zooms in. You’ll then be able to purchase our attorney-prepared website disclaimer for your state.
NOTE: After purchase, please provide the downloaded zip file to your web developer or web host. You’ll be able to personalize the website content by editing the xml files found in the data folder.I