Starting to take on investors

[Account Closed]

I've found a niche here that's really worked for me and have started taking on investors. Do you think that I should just let the word travel by my current investors telling other people or go out and tell people myself? I offer a 12% return annually so I'm thinking that it will probably spread on its own but maybe it needs a push?

Thoughts, feelings, opinions all welcome!

[John Blackman]

Keep in mind, even if it is just a note, you are still selling a note that is securitized by the property.  So you are technically still subject to securities laws.  The risk all comes down to whether or not your investors sue you if they are unhappy.

I know of someone in Austin who was broadcasting 12% returns to anyone who would read his web site.  He wasn't checking for accredited status or submitting offering docs.  He was raided by guys in black suits with guns.  It was not pretty.

You can solicit to anyone, but you can only take money from accredited investors if you work under a 506(c) exemption.  You also have to verify that they are accredited.  It sounds like you are not going to file an offering with the SEC which can be dangerous if you are soliciting to people you don't know.  If there is an existing relationship there is less ground for a lawsuit. Consult an attorney.  Tread carefully.