Q: If I purchase foreclosures to re-sell, using the money of another person am I at risk with SEC of selling securities?
I create an LLC with 1 other person that finances the purchases. I do all of the work. Houses are purchased in the name of the LLC. We are both 50/50 partners of the LLC. I sell the house and we split net profit 50/50.
If I do this with other investors, creating a separate LLC with each one, buying properties and total invested is less than 1 million. (Total combined of all investors/LLCs) Am I breaking the law? Assume some solicitation, accredited and non-accredited investors, less than 12 investors total. (each has a separate LLC with me). This is very profitable.
A: ONE INVESTOR IN ONE LLC MIGHT NOT BE A PROBLEM BUT THE MORE YOU DO THE CLOSER YOU COME TO BEING LABALED AN UNREGISTERED BROKER SELLING UNREGISTERED SECURITIES
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