Alan Cowgill

What if I’m already pregnant! What the heck does that mean?

Well, in creating the new SEC Compliance home study system,

I am including a section for Real Estate investors that

currently have private lenders and need to know how to

handle it.

So in the context of becoming in compliance with the SEC, I

kiddingly refer to this situation this way.

So, it means if you already have private lenders what steps

should you take to get in compliance with the SEC.

What do you do if you already have private lenders and

you’re over your states threshold, or you have advertised, or

you paid commissions, or you have private lenders in one state

and property in another. You now realize that it is important

to get in compliance.

You didn’t know that you needed to file paperwork with the SEC

when you started finding private lenders.

You just didn’t know the rules and you’re not alone.

Well here is how it works.

Rather than having one filing, you will have two.

One filing is to put together a package of everything you

have done in the past to find private lenders, with

attachments and to pay a fee.

The second filing is the one that you would normally file to

notify the SEC of your intent to advertise, pool money, etc.

It is a look forward.

The two filings, at least in Ohio are different forms.

You will need to attach the following to the appropriate

filing…

1) Your disclosure statement

2) Advertising you have used and advertising you plan on

using for the go forward package.

3) Promissory notes to your look back package.

Now let me give you a HUGE time saving HINT…

The disclosure statement is critical to the SEC. They will

make sure that everything that is important for the potential

lender to know about your business is included in this

document.

Therefore, you want to spend some time on the creation of

this document. You can find a template in the SEC Compliance

package.

A couple other points that I’ll include in future newsletters.

1) When you currently have private lenders, they should get a

copy of your disclosure statement, so you should see that

they get a copy.

I go so far as to have them sign for it and then keep it on

file to prove that they got a copy.

2) UCC1 needs to be filed. In many states you can do this

online.

Finally, what if you have out of state lenders and also

lenders in your state and you want to keep your exemption for

in state lenders. Well an idea is to create two entities.

One for all the property and lenders within your state, and

a separate entity for all out of state properties and/or

lenders. Might be better than having everything all rolled

into one big lump when it comes to filing. When you cross

state lines the federal SEC gets involved and you may need

to file with them. Just a thought.

Important Tip

The foundation for being successful in Real Estate is getting

a solid education.

Alan Cowgill is a speaker, author, and real estate entrepreneur. Alan has bought or sold over 200 investment properties. His step-by-step system “Private Lending Made Easy” teaches others to find private lenders. Contact Alan at 937-390-0816 or 866-831-3540. For a FREE audio go to www.PrivateLendingMadeEasy.com