b'How to Legally Raise Private Money for Real Estate and Small BusinessSecurityAn investment contract between an issuer and at least one other party, which includes the expectation that parties other than the issuer will re-ceive income or a profit. Whether or not an agreement is an investment contract depends on whether it meets the following standards, based upon the Howey Test, which are:1) an investment of money; 2) in a common enterprise; 3) with an expectation of profits; and 4) generated solely by the efforts of the promoter.Securities OfferingThe sale of securities by a company, commonly a corporation, limited liability company or a limited partnership.Securities Offering DocumentsThe legal documents necessary for an issuer to offer securities to inves-tors. Typically, these documents consist of a disclosure document, a gov-erning document for the company issuing securities, and a subscription agreement between the issuer, with the investor documenting the terms under which the investor buys interests or shares in the issuers company. Simple InterestInterest calculated only on the principal balance of a loan, as opposed to compounded interest, which is calculated on both the principal amount of a loan and the accumulated interest on the loan.SyndicateA group formed for a common purpose. Syndicator A person who organizes a group for a common purpose and raises the funds to advance that common purpose. Trust Deed/Deed of TrustA document providing evidence of an agreement between a lender and a borrower to transfer interest in real estate owned by the borrower from the borrower to a neutral third party, which holds title to the land as se-curity for the loan.162'