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!

[Michael Worley]

Rule 505 states you can sell up to 35 'other persons' than accredited investors and be exempt from registration.

So, take that how you want. Not legal advice or tax advice.