SEC Questions Answered

While speaking all over the nation and meeting thousands of real estate investors over the past few years, and getting asked questions on the SEC, I realized that there is a lot of confusion concerning SEC regulations as it applies to private lending.

The confusion seems to arise because of the following:

1) Each state establishes their own regulations and exemptions. Therefore there are different guidelines depending on where you live.

2)  If you cross state lines with your private lending, i.e. houses in one state and lenders in another, the Federal SEC regulations come into play.

3)  There are a lot of half-truths floating around and when people hear these, they get confused and possibly fearful. To be better equipped to answer everyone’s questions, I decided to hire and attorney to do some research. What I found was that each state is able to establish their own regulations, but they all have the same pattern.

So I’ll use my state of Ohio as a model to explain what is typical for nearly all states.

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