All Forum Posts by: Donald Williams

You can say whatever you want as long as it is factual and it won't get in sued later on.  Anything you say, write, advertise, etc. becomes PART OF THE OFFERING and would need proper disclosures to go with it.  You have to be very careful when citing returns or doing pro formas.  Everything needs to be documented and it would be best to have your securities counsel review it.  

There is no way to market only to accredited investors if you advertise.  That is why there are heightened accreditation processes you have to go through to determine that someone is really an accredited investor.  You can no longer rely strictly on "self-certification" like you could with the old 506(b) rules.  You should consider hiring a third party accreditation service to do this for you.  They are not all created equally and there is a lot to choosing one correctly.  If you choose one that is too strict you'll filter out all of your investors because nobody wants to turn over all of the information the gov-mint wants to invest a small amount of money in a crowdfunded offering.  If you choose one that is too liberal you risk being the plaintiff in the case law that determines what reasonableness means.  

Guarantee and investment should NEVER go in the same sentence.  You can't ever guarantee anything.  I wouldn't even use "fixed".  I would use words like "projected" and other non-committal terms.  A good securities attorney will go through your offering and remove any adjectives or superlatives.   If things ever go sideways the plantiff's attorney, with the benefit of 20/20 hindsight, will blow those phrases up in 30-point font and display it for the jury while trying to hang you out to dry.

The bottom line is that you need a good securities attorney.  Don't try to do anything on your own.  There is simply too much risk in screwing it up.  You could lose your ability to sells securities in the future or GO TO JAIL if you do it wrong.  Pay the money.  

One more strategy would be to go to your local meetup group to find a CASH buyer. 

The numbers sound good but there's always the risk of your end cashbuyer not closing. Then you've just increased the property value on a house that you don't own and aren't able to profit from. Be careful with that method. Prehabbing strategy is an excellent one to utilize when wholesaling but works best when you've closed on it already, put a little sweat equity in then flip it to another investor a.s.a.p for cash. However, to answer your question, yes you can still do a double closing just make sure the check is made out for cash payment. You might want to stipulate that to your end buyer ahead of time so they can inform their lender...

Kudos,

Mary