What Disclaimer and Bio Should a Sponsor Use on Social Media When Raising Money?
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A sponsor's social bio should say who you are, that you sponsor real estate deals and are paid fees from them, and where to learn more, with a link to a newsletter or waitlist rather than a live offering unless you run a Rule 506(c) raise. A disclaimer under a post is good practice, but it does not turn an offer into education. The post must still be accurate and balanced, and allowed under your exemption. Treat the disclaimer as a clarity tool, not a shield.
What should a sponsor bio say?
- Who you are: your name and a plain description. "I buy and operate apartment buildings in Ohio."
- Your role: "I sponsor apartment syndications and earn fees as the sponsor."
- What the account is for: education, deal walkthroughs, market notes.
- One link: a newsletter or waitlist, or the sponsor page. Under 506(c), a deal page is allowed.
Example:
"Sponsor of apartment syndications. I teach how I underwrite deals. I earn fees from the deals I sponsor. Free newsletter below."
That is short enough to read and plain about your interest.
Is a "not an offer" disclaimer enough?
No. A disclaimer is one fact among many. If a post describes a deal, a minimum and how to invest, a line saying "this is not an offer" does not change what it is. The antifraud rule, Rule 10b-5, prohibits misleading statements and omissions, and the test is the overall impression the message gives. Under Rule 506(b), the test for general solicitation is whether a communication offers or advertises an investment to people without a relationship to you (17 CFR 230.502).
What should a post disclaimer cover?
A good one reflects what is true for your offering:
- You are the sponsor and are paid from the deal.
- Investing involves risk, including loss of the entire investment.
- Past results do not predict future results, and projections are not promises.
- Offers are made only through the offering documents, to eligible investors.
- Under a 506(c) raise, only accredited investors can invest and they must be verified.
Sample wording for a Rule 506(c) deal post:
"I am the sponsor of this deal and earn fees from it. Investing involves risk, including loss of all invested money. Projections are estimates, not promises. Only accredited investors can invest, and we verify that. Read the offering documents before deciding."
For a Rule 506(b) teaching post:
"This is education, not an offer. I earn fees from deals I sponsor."
Keep it plain, put it where people read it (the first lines or on screen in a video), and match it to what the post actually does.
Where should the disclaimer go?
- Video: say it out loud and show it on screen, not only in the description.
- Reels and short clips: include the key line on screen, because many viewers never open the caption.
- Posts: the first lines of the caption, not after "see more".
- Pinned comment or highlight: a short version, with a link to the full text.
What else should you disclose?
If you have a paid partnership, name it. The FTC's endorsement rules require clear disclosure of a material connection (16 CFR Part 255). See the FTC rules for sponsor videos. Anyone paid to publicize a security must also disclose the payment under Section 17(b) (15 U.S.C. 77q). As the sponsor you earn as the deal's sponsor doing real work, not as a paid promoter; see sponsor or paid promoter.
Our take
A bio and a disclaimer are cheap, and they help readers and regulators see you were straightforward. Write them once, review them with a securities attorney of your choosing, and use them everywhere. But put your care into the posts themselves.
Trade-offs and who this is not for
- Legal boilerplate can bury your voice. Short and plain works better.
- Not for anyone who relies on a disclaimer to post a pitch. The post still has to be allowed.
- Common mistake: copying another sponsor's disclaimer. Yours must match your own offering and exemption.
- Not a substitute for counsel.
Related guides: What sponsors can say and Posting about your deal.
How DoorRaise fits in
DoorRaise helps sponsors raise equity for apartment buildings with 5+ units from friends and followers who already trust them, under Rule 506(b) or 506(c). We are software, legal document preparation, escrow coordination and verification services. We are not a law firm, broker-dealer, investment adviser, funding portal, bank or escrow agent, and we do not hold investor money: investors wire their money to escrow at Enterprise Bank & Trust, in the deal's name.
Your sponsor page and deal page carry the full terms and risk language so a short post can point to them. Flat fees, never a percentage of the raise (see pricing). Create your free sponsor page.
FAQ
Do I need a disclaimer on every post?
It is good practice on any post about a deal or investing. Education posts can use a shorter line that states your role.
Does "not an offer" protect me?
No. The content decides, not the label.
Should my bio link to my deal?
Only in a Rule 506(c) raise. Otherwise link to a newsletter, waitlist or sponsor page.
Do I have to say I earn fees?
Yes, state your role and that you are paid through the deal.
Sources
- 17 CFR 230.502
- 17 CFR 230.506
- 17 CFR 240.10b-5
- 16 CFR Part 255, FTC endorsement guides
- 15 U.S.C. 77q (Section 17(b))
This article is general information, not legal, tax or investment advice. The sample wording is an illustration, not legal text. Talk to a securities attorney before you market an offering. DoorRaise is not a law firm, broker-dealer, investment adviser or funding portal.