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Where Is the Money?

Because the U.S. Securities and Exchange Commission (SEC) strictly forbids the general solicitation of investment capital, you’ll need to be creative in getting the message out about your fix-and-flip opportunity. Remember, a substantive relationship is required with an investor or partner.

How substantive? The SEC is vague in their description. I took a class once on private-equity fundraising, and the instructor told us that if we meet the prospective investor at a back yard barbeque, bar, camping trip, or networking event then we were probably legal in eyes of the SEC.

The rules aren’t as clear if you borrow money from ...

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