Private Lending Scenario with Question

[Stuart Grazier]

Investor A has a fix and flip property and looks for private money to fund. Investor A is offering a 15% interest-only loan to Investor B.

Investor B has private money to lend Investor A. Investor B lends money and expects to be secured with a 1st lien position.

Investor B has partners (Investor C, D, & E) that he pools money from and offers them 10% interest.

Question 1: What type of platform should Investor B use to secure Investors C, D, & E? Since Investor B has the 1st lien position, what other type of instrument can be used? Would a promissory note work?

Question 2: None of the investors are accredited. What does Investor B need to do to ensure he follows guidelines set by the SEC?