Is it illegal to send out letters to private lenders? I have a list of private lenders that I know invest on real estate but not sure if I could send out letters to them.
You can send a letter to anybody you want to. I guess the problem may be with how you acquired the list. If the list is a propriety list and you did not pay for it, there could be a problem with the owner of the list suing you.
I was more or less thinking about the SEC. I know you really can’t mention money on your 1st meeting with a private lender but there is nothing online suggesting what can and can’t be stated in letter.
Good question. Below are a couple of web sites I’ve noticed that have specific solicitations for private lenders (with and without equity “kickers” in the deals), where specific interest rates are given. I don’t think looking for mortgage money for 1st position liens where there is no “pooling of funds”, and if done in your home state where the property is located, violates any rules, I could be wrong. I’ve heard some say that if you make a solicitation to those you have no prior relationship with, that you can be running afoul of SEC rules. Makes sense to talk to an attorney.
http://www.truewholesalehouses.com/index.php#!prettyPhoto[main]/1/ and click “How it Works”.
Thanks for the info.