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 Post subject: Why can't I solicit?
PostPosted: Mon Mar 15, 2010 3:17 pm 
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Joined: Mon Mar 15, 2010 3:08 pm
Posts: 1
What are the regulations keeping me from soliciting investors?

I've been on the PA SEC web sight. I can't seem to find anything that prohibits me from standing on the street corner saying "I am a developer of multi family properties. I need investors. My investors typically see 20% return on their money." Or is it different because I offer positions in Limited Partnership?

The SEC says that I have to be registered to offer stock in the company.


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 Post subject: Re: Why can't I solicit?
PostPosted: Sun Aug 29, 2010 10:14 am 
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Joined: Thu Mar 04, 2010 8:42 am
Posts: 10
Location: Pittsburgh, PA
If you are offering stock for sale then you need to be registered. it is dependent on what you are giving as return and what forum or medium you are using in soliciting investors.


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 Post subject: Re: Why can't I solicit?
PostPosted: Sun Sep 05, 2010 10:35 am 
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Joined: Tue Feb 12, 2008 4:45 pm
Posts: 111
Location: Pittsburgh, PA
Phil,

I know that if you're not registered with the SEC to sell securities, you have to have a pre-existing relationship with a potential investor, in order to legally work with him or her as a private lender. However, I don't know where to find the definitive reference for that law. Is there a place where we can read the actual regulations on this?

I have a friend who was advertising for investors and hosting luncheons for potential investors (as recommended in the Alan Cowgill course), and he got into serious and very expensive trouble with the SEC. Of course, this makes me very cautious about soliciting for private lenders, though, I think many of us would like to know how to do this legally.

Thank you,
Emilie


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 Post subject: Re: Why can't I solicit?
PostPosted: Tue Sep 14, 2010 7:17 am 
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Joined: Thu Mar 04, 2010 8:42 am
Posts: 10
Location: Pittsburgh, PA
This is the site for the Pennsylvania Securities law. Pay particular attention to the definitions and Section 202 and 203 d-f. these last ones outline the exemptions to the law.

http://www.psc.state.pa.us/policy/cmpndLRB2005.pdf


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 Post subject: Re: Why can't I solicit?
PostPosted: Tue Sep 14, 2010 8:43 am 
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Joined: Tue Feb 12, 2008 4:45 pm
Posts: 111
Location: Pittsburgh, PA
Phil, thank you for taking time to find the reference for us!
It is very much appreciated.


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