Can I publicly seek private lenders for second position liens?
Last year I did about 30 fix-and-flips in Utah and Florida. As I have been looking over my books, I am finding that I spent approximately $500,000 last year just on interest, lender fees, etc. for those properties
I have been thinking about posting on my social media accounts, such as Facebook and LinkedIn, seeing if there are any private individuals who have cash sitting in money market or bank accounts, who might be willing to become private money lenders for me.
My thought is most of these individuals are earning somewhere between 0.5% - 4% on their money. I could get them a much stronger return of their capital, with relatively low’ish risk due to my experience and they’d be listed on title as lien holders. This could potentially save myself substantial amounts of expenses over the current lenders I am using
My question is if I post something like that on social media, asking people if they have interest in being a private lender for me, would I be running afoul of any type of securities laws? I know that most syndication funds need to be registered with the SEC.
Would something like this fall under a category of investments that would require registration with the SEC? Or would it be different since the individuals would be lenders to me, rather than equity holders?