Hi Everybody. My name is John Fischer. Welcome to Salesleads TV. SEC, a credit investor. What the hell is that? SEC security Exchange Commission. An accredited investor is a person that makes 200,000 a year for the last two years, 300,000 combined million net worth, not including their home and experience in managing their personal portfolio.
So you know again, SEC is a security Exchange commission. That’s their ruling. And they’re the ones that handle private placements. So the private placements are Reg D 504 a million or less, 505, one to 5,000,506, 5 million plus.
The latest reg D is the 506 C, as in Charlie. That when you’re allowed to solicit $5 million. And they must be accredited. So the definition is really, really important that if you’re doing these private places and you’re raising money, especially the 506 C, this is like something that you have to actually ask them.
Some companies that actually legally or accounting firms will actually legally put this guy on paper. At first, when the 506 C came out, everybody was worried about, well, how do we vent these guys to be accredited?
What do we do? And they’ve come up with all kinds of different methods. But if you’re doing any kind of raising money and it’s a Reg D 506 C, they’re not kidding about these people being accredited. The Reg D 504, they’ve got a 30 exemption, and, boy, it’s double trouble.
You let 30 people in that are not accredited, you got the SEC snooping around, wondering if these guys are qualified and if they get hurt or they lose their money and blah, blah, blah, blah, blah. So I highly recommend you don’t even due to Reg D 504-50-5506 B, as a boy, you got a cooling off period, 30 days.
You could only call friends and family. It’s just a headache. Just stick with the 50 six C and just make sure he’s accredited, and that’s it. If you have any questions, feel free to call me. 561-239-0364.
Have a beautiful day and God bless.