Rule 506(c) for Content Creators: How to Raise From Accredited Followers
Rule 506(c) is the exemption that lets a content creator promote a real estate deal publicly, on YouTube, Instagram, a podcast or a newsletter, and accept money from followers. The tradeoff has two parts: every investor must be accredited, and you must take reasonable steps to verify it before you accept their money.
New to this? Start with our guide to how creators raise money from followers for real estate.
Who counts as accredited
An individual generally qualifies with income over $200,000 ($300,000 with a spouse or partner) in each of the last two years, or net worth over $1 million not counting a primary home, or by holding a Series 7, 65 or 82 license in good standing. Entities have their own tests. See accredited investor definition.
How verification works
You need reasonable steps, and the right ones depend on the facts. Common methods:
| Method | What the investor provides |
|---|---|
| Income | Tax returns or W-2s for two years, plus a statement that they expect the same this year |
| Net worth | Bank and brokerage statements, plus a credit report, all dated within the prior three months |
| Professional letter | A letter from a registered broker-dealer, investment adviser, attorney or CPA confirming the status, dated within the prior three months |
| High minimum investment | Written representations that they are accredited and the investment isn't financed by a third party, with a minimum of $200,000 (individuals) or $1 million (entities) |
The high-minimum approach comes from a March 2025 staff no-action letter and works best for large checks. Most creator-led apartment deals have lower minimums, so third-party verification is more common. See accredited investor verification.
A step-by-step 506(c) raise for a creator
A 506(c) raise follows seven steps, and verification and escrow come before any money moves.
- Pick the deal and the entity. A specific property under contract, held in its own LLC.
- Prepare offering documents with a securities attorney.
- Tell followers the rules up front. Every call to action should say the deal is for accredited investors only.
- Send people to one deal page with the terms, fees, risks and documents.
- Verify each investor before accepting subscription documents or money.
- Hold funds in escrow until closing.
- File Form D within 15 days after the first sale, plus state notices.
What counts as general solicitation, and why it's OK here
Any broad public message about the offering, such as a video, post, ad or open webinar. Under 506(b) that's prohibited. Under 506(c) it's allowed, but your content is also part of the offering, so it must be accurate. See what creators can say about a deal.
Pitfalls
Most 506(c) problems come from taking money too early, skipping verification or overlooking disqualifying history.
- Taking money from a non-accredited follower "just this once" can blow the exemption for the whole raise.
- Skipping verification for followers you trust. The rule requires verification for every investor.
- Ignoring bad actor rules. Certain past securities violations or criminal convictions of the issuer, officers, promoters or paid solicitors can disqualify a 506 offering.
- Forgetting state notices. Most states want a notice filing and a fee.
Who this isn't for
506(c) isn't for you if most of your followers aren't accredited or you don't want to verify every investor. The verification step adds friction, and some accredited followers will drop out rather than share documents.
How DoorRaise handles 506(c) for creators
DoorRaise is built for 506(c). You share one link. Each investor completes an accreditation check from your deal page, signs and funds escrow. Verification is included in DoorRaise's flat fees.
DoorRaise is for apartment buildings with 5 or more units. Start your deal or see pricing.
Related guides
These guides cover the next questions most readers have.
- Can Your Followers Invest Under 506(b)? The Substantive Relationship Test for Creators
- How Much Can a Creator Raise From Followers for a Real Estate Deal? A Funnel Walkthrough
- Regulation Crowdfunding for Real Estate: How Sponsors Can Raise From Non-Accredited Investors
FAQ
Can I advertise a 506(c) deal on social media?
Yes, as long as every investor is accredited and you verify it.
Is a self-certification box enough under 506(c)?
No. You need reasonable steps to verify, such as documents, a professional's letter or the high-minimum approach in the March 2025 staff letter.
Do I have to verify every follower?
Only the ones who invest. You can't accept money from someone you haven't verified.
Can I switch to 506(b) after promoting publicly?
Only for people you built a substantive relationship with before the 506(b) offering began. See finding investors without breaking the rules.
Sources
- SEC, Rule 506(c)
- 17 CFR 230.506
- SEC staff no-action letter, March 12, 2025
- SEC, amendments to the accredited investor definition
- SEC, bad actor disqualification guide
- DoorRaise, pricing
This post is general information, not legal advice. Talk to a securities attorney before you market an offering. DoorRaise is not a broker-dealer, investment adviser or funding portal.