Alan Cowgill

When it comes to complying with the SEC regulations, I see

three groups of real estate investors…

Group #1: You don’t have any private lenders but are ready to

jump in the water and start bringing them on board.

STOP!!

Listen, this is the time you need to do the following:

1) Create your disclosure document to be handed out to lenders

2) You need to understand your states SEC compliance threshold

3) Find an SEC attorney and let him in on what you are doing.

4) Make a decision:

a) I am going to work with family, friends and associates and

stay under the state threshold so I don’t need to file.

b) I am going to advertise, pool and/or work with strangers

so I need to file with my states SEC office before I

approach my first private lender. So I have a registered

security.

c) I’m going to cross state lines and I’ll need to go for the

federal filing too.

d) I am in one of the 10 states that require me to notify the

state SEC office before I get my 1st private lender. So file

now.

5) Get your disclaimer statement completed too.

Group #2: You have a few private lenders but are under the

states threshold. You need to do all of the above plus

there is a form to look back and let the SEC office know what

you have been doing.

Group #3: You are over the threshold and have made a mess.

Hire an SEC Attorney and let them guide you through the

jungle. You won’t like it but I believe it is better to

put all your cards on the table face up and take your

spanking rather than wait and hope you don’t get in trouble.

The bottom-line…

Look, your dancing with a gorilla. Why take a chance. There

are rules on how to play the game. The SEC controls the rule

book and they are there to protect the consumer, not you.

The flat easiest way to be in compliance is to do it before

you secure your first private lender. So do yourself a favor

and start your business off on the right foot.

I find so many real estate investors are scared of the SEC.

If they would only follow the rules from day 1, it would

make life a lot easier and safer for all.

Important Tip

I have a bank of attorneys on my dream team. One for

evictions. Another for real estate closings. I have PrePaid

Legal for documents. AND I HAVE AN SEC ATTORNEY.

You should too.

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