oc new home building project

Heres the deal!


Apart from the fact that you’re breaking like a dozen SEC rules and will probably end up getting sued, I don’t follow your math.

the 540,000 is in a mortgage that I have on the property

what sec rules am I breaking?

Not all offerings of securities must be registered with the Commission. Some exemptions from the registration requirement include:

private offerings to a limited number of persons or institutions;

offerings of limited size;

intrastate offerings; and

securities of municipal, state, and federal governments.
By exempting many small offerings from the registration process, the SEC seeks to foster capital formation by lowering the cost of offering securities to the public.

this is from the sec

I just don’t think you’ve thought this all the way through.

What are these 300 people going to get to evidence their investment? A note? Shares?

I would really work hard to limit the number of people. You don’t want to manage 300 accounts. Plus, the more people you have, the more likely you’re going to get sued.

As for the SEC, I’m familiar with all of the exemptions. You’re not raising money privately because you’re out and about on the Web, so that can not be considered private. You’re trying to get 300 people involved, so that’s not very private, either. And you’re hardly intrastate as, again, you’re on the Web.

I’m not saying you’ll hear from the SEC about this, but I am saying that if your deal goes bad, you can be sure that SOMEONE will contact their lawyer about how they can make you miserable, and when they find out that you did an illegal offering of securities (which is what loans and equity investments are), you’ll be hung out to dry, probably required to repay the money with triple damages.

I think there has to be a better way to get this kind of investment capital. Dealing with 300 people…that’s a nightmare.

…and the four REI Club Forum Rules that he broke (thus the edit/deletes)…


sorry for the rule breaks, I should have read them closer

I found a comp around the corner that sold in july for 1,367,000.00

a 65% hard money loan would be 888,500.00 enough for me to build and make a profit, so i’m going to try hard money

Why not just get a rehab loan and bring your current property up in value. You have had multiple people point out flaws in this plan over several different topics you have posted. Starting out your first new construction spec home at 1.3 million is career and financial suicide.