Conclusion: Real Estate 

Regulation D - Rule 506(b) or Rule 506(c) do not require any Federal approval. The differences between Rule 506(b) and Rule 506(c) is that with 506(c) you can advertise for investors and 506(b) you can't. So what does this mean? IF, you conduct your Offering following the Rules specified in Regulation D you are exempt from having to comply with the very difficult and complicated rules that govern the other types of Offerings. 

What do you need once you Find Investors? The short answer is Offering Documents which consist of a Private Placement Memorandum, Subscription Agreement, and Investor Questionnaire. You are responsible for giving your Offering Documents to each and every prospective investor regardless of whether they invest in your project. The Private Placement Memorandum aka PPM must meet Regulation D requirement that it contains "All Material Information" that an investor needs to make an informed investment decision. The Subscription Agreement is the acknowledgment of receipt of the Private Placement Memorandum aka PPM by the investor which they sign and returns to you with their investment check. Remember, the Offering Documents are required to be given to any prospect that you discuss investing in your project; regardless whether they ultimately invest or not. The only exemptions are members of your immediate family i.e.: Mother, Father, Sister, Brother. 

Your responsibility is to provide each and every "prospective" investor with "All Material Information." You must create "Offering Documents" aka Private Placement Memorandum which will be discussed next.   You might have heard of other types of Offerings such as Regulation A aka Reg A, Regulation S aka Reg S, Initial Public Offering aka IPO, etc. In all other instances, you would be required to submit your Offering Documents for Federal "approval." In each case, the costs will easily exceed $250,000, and unless you are an operating business with several years of certified financials, it is unlikely you will be successful in raising capital. The exception is Regulation D - Rule 506 (b) or (c) Offerings. The quick answer, don't waste your time. Each of those avenues requires "Federal Approval" before you can take any funds from investors. 

SEE THESE OTHER LINKS

PRIVATE PLACEMENT MEMORANDUM PREPARATION $2,750

http://www.shicap.com/ppm-preparation.html

 

NO FEE CHARGED IF NO CAPITAL RAISED

http://www.shicap.com/consulting-raising-venture-capital.html 

 

SAMPLE PRIVATE PLACEMENT MEMORANDUM 

http://www.shicap.com/private-placement-memorandum-sample.html 

 

ABOUT SHIELDS

http://www.shicap.com/about-mr-shields.html

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