Subject To Letters without violating SEC licensing laws

[Ally Hill]

Hi BP community. I am looking through public records and planning to reach out to pre-foreclosure homeowners, but I want to be careful in my language since offering help and advice on their foreclosure situation is federally regulated.

Questions:
-- Thoughts on my sample message below? Advice to tailor it without tailoring it.. too much?

-- I don't think I can get into the options I see for them in this letter, correct? (short sale, let me wholesale, subject to deal)

-- When can I discuss something like a subject-to deal without being in violation of federal laws around assisting someone in preforeclosure?

Thanks! 

Hello TKTKTK,

I am interested in buying your property, and this doesn’t mean you have to vacate the property either. I am a buy-and-hold real estate investor interested in your area and your property specifically. If you want to talk more and see if our goals align, please call me at TKTKTK.

Hope to speak with you soon,

Ally H. 

[Account Closed]

Quote from @Ally Hill:

Quote from @Ally Hill:

Hi BP community. I am looking through public records and planning to reach out to pre-foreclosure homeowners, but I want to be careful in my language since offering help and advice on their foreclosure situation is federally regulated.

Questions:
-- Thoughts on my sample message below? Advice to tailor it without tailoring it.. too much?

-- I don't think I can get into the options I see for them in this letter, correct? (short sale, let me wholesale, subject to deal)

-- When can I discuss something like a subject-to deal without being in violation of federal laws around assisting someone in preforeclosure?

Thanks! 

Hello TKTKTK,

I am interested in buying your property, and this doesn’t mean you have to vacate the property either. I am a buy-and-hold real estate investor interested in your area and your property specifically. If you want to talk more and see if our goals align, please call me at TKTKTK.

Hope to speak with you soon,

Ally H. 

Thanks for the replies I've gotten. This was a strategy pitched by tenured investors at a local reia meetup which inspired the question. So if there are any Georgia REI who can speak to their experience, please do.
Appreciate the tips to run by an attorney and I’ll definitely do this. Looking for a strong securities attorney referral too. 

 It's not really a securities issue unless you are planning on forming a group and soliciting investors. You can form a Joint Venture etc and not worry about SEC. 

The thing you do have to be aware of are local laws about pre-foreclosure. As you already seem to be aware of, foreclosure solicitaion laws vary from state to state.