How Raising Money for Real Estate Deals Just Got Easier
Rule 506(c) loosens previous restrictions
On September 23, 2013 the U.S. Securities and Exchange Commission (SEC) made it easier for real estate professionals to attract sales of securities to accredited investors through Rule 506(c).
On September 24, 2013, SDSU's Corky McMillin Center for Real Estate held an event on the SDSU campus to clarify what Rule 506(c) is and its impact on the real estate industry.
Attorney Darryl Steinhause of DLA Piper, an expert on real estate securities and tax issues, gave an hour-long presentation with questions and answers from the audience peppered throughout to discuss how the new rule lifts restrictions on general advertising to attract potential investors for real estate transactions. The rule also states that the seller of the securities must take reasonable measures to verify that only accredited investors, as defined by the SEC, are qualified buyers. Previously, advertising these types of real estate securities investments was severely limited.
The event, attended by local real estate professionals and developers, kicked off with a networking breakfast and concluded with a line of audience members waiting to discuss their specific concerns with Steinhause on a one-on-one basis.