Hard money - SEC General Solicitations

[Greg Zimdahl]

It seems to be apparent that it is ok to request money from a hard money lender. I don't want to make assumptions however. If it is ok to request money from a hard money lender, why? Why is this not considered a general solicitation?

[Jeff Greenberg]

A loan with a fixed interest rate is not considered a security.  An equity partnership with a share of the profits and no or limited control of the project puts the transaction in the SEC realm. If you want to play in that arena, you need to know the rules.