Posting a "solicitation" on Facebook?

Question

Could you give me your feedback on these potential FB posts?

[b][u]Have an accepted contract on a 4-plex in Bremerton. Needs lots of work but numbers look good. Now discussing financing with potential private money partners. So far so good!

OR

[/b][/u]Have an accepted contract on a 4-plex in Bremerton. Needs lots of work but numbers look great! Now discussing financing with potential private money partners. Message me if you're interested.

First, are these SCC compliant to your understanding, and if so, which one is better?

Thank you!

Ann Bellamy · Answer

From a compliance perspective, neither one.  The short answer is, you can look for lenders, but you can't look for "investors" or "partners".

It's more complicated than that, you can do a search on BP for SEC or securities and will find a bunch of information to get you started.

Brian Sorensen · Answer

Bill, I agree with you. I think the first one is simply informational. I don't see how it could be construed as a solicitation of any kind.

Bill Walston · Answer

Brian Sorensen, the first likely wouldn't cause you a problem (according to my attorney, who was asked a similar question) since you are just stating a fact.  You aren't actually soliciting anyone nor asking them to contact you.  The second would not fly :)

You should run it by your attorney just to be sure...

Just my .02...

Brian Sorensen · Answer

Ned, this is what I what I was thinking. I have prior contact with all these people, both online and in person. I also have a knowledgeable RE partner who says it's OK, but I'm a touch nervous about doing it. I wonder if the law is deliberately vague.

Ned Carey · Answer

If the postings are only visible to your friends, it could be argued that the only people who see them are people you already have a relationship with and therefore it is not a public solicitation.

However this is a gray area and I am sure most Securities attorneys would strongly advise against it.   Many people collect friends on Facebook who they really don't know.

If the postings are visible to the public, no way is this allowed.

I'd back up what Ann Bellamy said "It's more complicated than that."

Posting a "solicitation" on Facebook?

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