Regulations on Publicly Sharing of Closed Deals

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Regulations on Publicly Sharing of Closed Deals

Matt Aquino
Investor · Bergen County, NJ · Member since 2016 · 32 posts · 37 votes

Hi All - Curious if anyone could pass along guidance which they've received from their attorneys regarding the "dos and donts" of sharing information publicly regarding a deal once its closed ?

For example - sharing a post with the name, pictures, location of a building you closed on to market the successful closing to a LinkedIn , Instagram public page. Would it be allowable to also include projected IRR on the project publicly?

Sharing our successes obviously is one of the best marketing tools we have , so I'm curious what you can, can't, and shouldn't be doing regarding the SEC regulations, etc. 

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Justin Goodin
Investor · Indianapolis, IN · Member since 2018 · 1k+ posts · 756 votes
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@Matt Aquino I don't see how sharing this information could ever be in violation of SEC regulations. 

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  • Justin Goodin
    Investor · Indianapolis, IN · Member since 2018 · 1k+ posts · 756 votes
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    @Matt Aquino I don't see how sharing this information could ever be in violation of SEC regulations. 

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  • Kim Meredith HamptonBusiness Member
    Real Estate Broker · St Petersburg · Member since 2014 · 2k+ posts · 2k+ votes
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    @Matt Aquino once it closes, most of this is public record 

    [email protected]407-448-6679Podcast Guest on Show The Key to Scoring Discounted Deals in One of America’s Hottest Markets
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  • Brian Pownall
    Investor · Houston, TX · Member since 2020 · 77 posts · 66 votes
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    This topic was a conversation yesterday on a Mastermind call I was on. As always the final conclusion was ask your attorney...which is always the best advice. I would hesitate to share a projected IRR as it is just that, a projection and seemingly opening yourself up. But otherwise, once a deal is closed definitely share the win and your excitement. Look forward to seeing the post!

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  • Jeffrey Donis
    Investor · Durham, NC · Member since 2020 · 1k+ posts · 691 votes
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    I agree with @Justin Goodin I believe you can share information on closed deals. As long as you aren't advertising a current deal in order to solicit investors, I think you should be fine. But, make sure to consult with an attorney if you are uncertain! Better safe than sorry. 

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  • Evan Polaski
    Cincinnati, OH · Member since 2020 · 4k+ posts · 3k+ votes
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    @Matt Aquino, the trouble typically comes in not whether the deal is closed or not, but whether the offering is closed.  It also high depends on the SEC rules you are operating under.  

    Generally, a closed offering is available to be discussed and even publicized.  Most people don't share the projected returns because many sponsors view that is a competitive advantage, and it opens the deal up to scrutiny from those that will never be involved in the deal. 

    And lastly, as Brian mentions: it doesn't matter what any of us say, since not a single one of us is your securities attorney. I would heed the advice of the one that will also be defending you in the case any action is taken. 

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  • Matt Aquino
    OP
    Investor · Bergen County, NJ · Member since 2016 · 32 posts · 37 votes
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    Thanks @Justin Goodin @Kim Meredith Hampton @Jeffrey Donis @Brian Pownall @Evan Polaski

    Helpful responses. 

    I ended up sharing on my personal social media page (no mention of projected returns). As expected it generated some inflow of DMs of people congratulating but more importantly being curious and asking about it.  Social media is such a powerful business tool

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  • Chris Levarek
    Real Estate Syndicator · Phoenix, AZ · Member since 2018 · 903 posts · 1k+ votes
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    @Matt Aquino It's something I've seen quite a bit on social media. Typically, syndication groups share "under contract", "performing due diligence", "closed" posts relative to deals. The important factor is not disclosing too much detail or returns, or asking for anything ie "If you want to learn about this investment opportunity...". Keep it generic. This is what we do and have been counseled to do. And of course, this is for 506b. If you have a 506c, then by all means shout from the rooftops :)

    As many have stated, have a question though, ask your attorney. And, not all attorney's will give the same answer in my experience dependent on risk tolerance or liability tolerance but it is worth the consultation.

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