Regulation D

[Luka Milicevic]

Hello Bigger Pockets folks!

I am having issues finding an answer to my question about regulation D as it pertains to real estate investing.

I have done quite a bit of reading/research on regulation D, but I still have a few unanswered questions. 

When exactly are you required to file form D?

If my grandfather decided to give me a $25k loan at 3% due in 5 years, would that require me filing form D? 

What if it wasn't a family member, rather a friend of mine?

In the above example, if he gave me $25k for 10% equity, I'm assuming that would be considered selling securities and would require compliance with the SEC.

I'm just having a difficult time understanding what constitutes selling securities when raising capital. I'm a newer investor and have only used my own money to do deals. I hope in the future that I will venture out and raise capital, and at that point I will seek professional legal counsel. Even though I will be paying a lawyer, I still want to be educated on the topic.

Any help is greatly appreciated!