Private money ads on Craigslist Financial Svcs

[Brian Sorensen]

I noticed there are lots of ads on CL Financial Svcs like this;

Motel in Idaho
looking for $250,000
secured by 1st deed of trust
Value of property $500k to $650k

add in 6-12 months interest reserve to the $250k, if you wish
motel is operating and doing well
approximate gross income of $100k for 2012

Prefer asset based, private money lender

Questions welcome
• Location: NW
•it's NOT ok to contact this poster with services or other commercial interests

My understanding is that this type of ad is in direct violation of SEC soliciting guidelines since they are directed at anyone who happens by.

Can we do this too?

[Chris Martin]

Here are SEC press releases. There are a few about real estate, but the one of interest is this one: http://www.sec.gov/news/press/2012/2012-170.htm, which reads

[i]Washington, D.C., Aug. 29, 2012 – The Securities and Exchange Commission today proposed rules to eliminate the prohibition against general solicitation and general advertising in certain securities offerings.

Under the proposed rules, which are mandated by the Jumpstart Our Business Startups Act, companies would be permitted to use general solicitation and general advertising to offer securities under Rule 506 of Regulation D of the Securities Act and Rule 144A of the Securities Act.[/i]

So, don't worry... be happy.