b'How to Legally Raise Private Moneyor hundreds of thousands of dollars. The amount of money raised must be sufficient to warrant the cost, and the issuer may be required to pay the legal fees associated with registration before a single dollar is raised from investors.Once your companybecomesregistered,it willhavetofileperiod-ic reports withthe approving agency, usually quarterly, annually, and as changes in your company occur. Additionally, your company may be required to undergo an expensive financial audit during the application process, and annually thereafter. Mostsinglepropertytransactionsorstartupscannotwithstandthe costs or timeframes involved in registering an offering. If you have a prop-erty or business acquisition under contract and need to close in 90 days, you dont have time to register. Or if you want to take advantage of the current opportunities with bank-owned real estate or launch the next greatest thing before someone else beats you to it, you will need to find another way to raise money from investors.Registration is the process companies go through to sell their securi-ties in such public forums as the New York Stock Exchange or NASDAQ. Remember when Facebook did its initial public offering? Facebook was allowed to sell its securities to the public only after registering the of-fering and getting approval from the SEC. While this process for raising corporate capital is a great American tradition and the backbone of our stock exchange system, it is probably not the appropriate choice for the people reading this bookat least not yet. The advantage of registration, however, is that a registered company can freely advertise its securities and accept funds from anyone with few restrictions. Securities brokers and dealers can be employed to sell the securities on your behalf, alleviating you from having to personally raise all of the money. The downside, however, is that the fees for complying with onerous reporting and auditing requirements of registered, publicly traded companies will dilute the amount of money available for invest-ment and thus the returns to investorsand you. Choice 2: Qualify for an Exemption from RegistrationIf your syndicate cant withstand the costs or timeframes necessary to register the offering, another option is to qualify for an exemption from 42'