When does the SEC come into play?

[Ryan Sajdera]

Hey everyone,

We are looking to do a bit larger deal bringing on other investors- mostly friends and family. Can anyone shed some light onto when you start dealing with the SEC when you are putting larger deals together? I understand that you aren’t lawyers. Thanks!

[Patricia Steiner]

Ryan, it's more complicated than that. I'm a former wealth banker (licensed) and dealt with transactions involving the SEC daily.  There are both state and federal laws - and exemptions - that apply to real estate transactions.  Here's a link that will provide you a high level overview:

http://www.methvenlaw.com/Handout_for_Real_Estate_Deals_and_the_Securities_Laws_2.html

Please know that those "bit larger deals" that get even close to SEC oversight come with some whopping legal fees.  Are you actually issuing securities or are you forming an investment group partnership (hypothetical question only; no need to respond).  

Hope the link will get you considering a whole lot of options for doing bigger - better.