Private Money Marketing - Posted by Eric

Posted by Eric on March 04, 2005 at 17:16:04:

sounds like a great way to get money from an established list. does anyone have any suggestions for a newspaper or website ad?


Private Money Marketing - Posted by Eric

Posted by Eric on March 04, 2005 at 10:51:47:

Hello all I have been investing for just over 6 months.I obtained 8 props, some creative some bank financed. Now I am at the point where I want to strengthen my hand with fast cash offers using private money. I plan on attending alan cowgills bootcamp this summer to learn more about attracting private money. I would like to get a jump on it though and put some advertising in the newspaper and on my website plus word of mouth. however, i am concerned with securities violations. so my question is what can and cant i do, i would also appreciate any successful ads.

Florence, SC

Re: Private Money Marketing - Posted by John B. Corey Jr.

Posted by John B. Corey Jr. on March 04, 2005 at 11:53:11:

To get the real definition might take a conversation with a lawyer.

As a practical matter do the following.

  1. Only discuss RE in your ads. No ads that talk about putting money into a fund or pool.

  2. One investor one deal. No pooling of funds.

  3. No guarantees as to returns that might be possible. You can talk about a specific transaction but you can not offer a guarantee. The security for any such investments is the property.

  4. Avoid almost all the issues by only taking money from accredited investors. There is a specific definition for such an person and the logic is they are wealthy enough they do not need all the normal protections.

John B. Corey Jr.
Chelsea Private Equity LLC

Re: Private Money Marketing - Posted by del-ohio

Posted by del-ohio on March 04, 2005 at 18:56:20:

If you follow Cory JRs advise you will safely avoid securities issues. The one thing I would add.

In Ohio there is no securities filing required if you have nine or less private lenders. At 10-34 investors a 6a2 filing is required. 34+ investors a 6a1 filing is required.

Most states do not require filings below a certain amount of private investors. For example in Iowa you can have 36 private lenders without filing. Then a few states require notice filings for all private lending.


Re: Private Money Marketing - Posted by ERIC

Posted by ERIC on March 04, 2005 at 13:54:12:

Would this fly?

“tired of earning 3% on your investments, call us about our private local real estate investment programs”

Re: Private Money Marketing - Posted by John

Posted by John on March 04, 2005 at 16:09:04:

I sent out an e-mail to about 300 investors that I have addresses for that mentioned a house I was wholesaling, that I’m looking for properties to rehab and by the way “Do you have investment money that isn’t earning you 12-15%? I’m looking for purcahse and repair money”

That was last week and today I have a check in hand that will cover all of my repair costs and a couple months of HML payments for over 20K. No payments due until the property is sold.