Can You Raise Money From TikTok Followers for a Real Estate Deal?
On this page
You can raise money from TikTok followers for a real estate deal only through an SEC exemption, and the fit is narrower than the follower count suggests. A video that offers a live deal is general solicitation, which only Rule 506(c) allows, and then every investor must be an accredited investor you have verified. Many TikTok viewers will not meet the income or net worth tests, so TikTok works best as the place where future investors first meet you, not where they invest.
This post is about TikTok's reach and limits. For the rules across platforms, see promoting a syndication on YouTube, Instagram or TikTok.
Who can invest from a TikTok following?
Under Rule 506(c), only accredited investors, and you must take reasonable steps to verify each one (SEC, Rule 506(c)). An individual qualifies by income, by net worth, or by holding certain licenses. The SEC's thresholds, from Rule 501, are individual income above $200,000 (or $300,000 with a spouse or partner) in each of the last two years with the same expected this year, or net worth above $1 million not counting the primary residence. Many viewers who like your content will not meet these tests, and that is normal. It is not a reason to loosen the rules.
Under Rule 506(b), a sponsor may sell to up to 35 purchasers who are not accredited, but only if each is sophisticated, you give them the required disclosure, and you reached them without general solicitation (SEC, Rule 506(b)). A public TikTok pitch does not meet the no-solicitation condition. See who can invest if they are not accredited.
What can a TikTok video say?
| Video | 506(b) raise | 506(c) raise |
|---|---|---|
| How a rent roll works, in 30 seconds | Fine | Fine |
| A tour of a building you passed on | Fine | Fine |
| "I am raising for this building, link in bio" | Not allowed | Allowed, with accurate, balanced claims |
| A return figure or a countdown | Not allowed | Risky even when allowed |
| A thank-you to investors who closed | Factual only, and no new pitch | Factual only |
A fifteen-second clip cannot carry the assumptions, risks and fees that a fair description needs. Rule 10b-5 covers misleading half-statements in any format (17 CFR 240.10b-5). If a clip has to leave out the context that makes a number fair, leave the number out.
What is a safe way to use TikTok to find investors?
- Teach one idea per video. Cap rate, debt service, a walk-through of a lease audit.
- Say who you are. Your profile should state that you sponsor apartment syndications and are paid fees as the sponsor.
- Pin one link to a list. A newsletter or waitlist, not a live deal, unless you run a 506(c) raise.
- Answer comments with education. Do not discuss the live offering under 506(b). See replying to comments and DMs during a raise.
- Run the offering elsewhere. A deal page with full terms, risks and verification, or a private invitation to people you know.
Our take
TikTok earns trust at low cost, but the investor decision needs long-form material. Treat each video as a doorway to an email list. If you do run a Rule 506(c) raise, verify every investor, and do not let a short clip make claims that the offering documents do not.
Trade-offs and who this is not for
- Not for sponsors who want fast capital. A following takes months, and a raise needs documents, escrow and verification.
- Not a place to answer investment questions. Comments are public and permanent.
- Common mistake: using music or trends over a deal claim. Entertainment can turn a fair description into a promise.
- Not a substitute for counsel. Speak with a securities attorney of your own choosing.
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.
In a 506(c) raise, a profile link can go to the deal page, and DoorRaise verifies that every investor is accredited, in 506(b) and 506(c) raises alike. Flat fees, never a percentage of the raise (see pricing). Create your free sponsor page.
FAQ
Can I advertise a real estate syndication on TikTok?
Only in a Rule 506(c) raise, where every investor is accredited and verified.
Can TikTok followers who are not accredited invest in my deal?
Not in a 506(c) raise. In a 506(b) raise you may take some purchasers who are not accredited, but not if you found them through a public pitch.
Is a TikTok link in my bio an advertisement?
If it points to a live offering, yes. A link to a newsletter or waitlist is not an offer.
Do I need to disclose that I earn fees from the deal?
Yes, say plainly that you are the sponsor and are paid through the deal.
Sources
This article is general information, not legal, tax or investment advice. Talk to a securities attorney before you market an offering. DoorRaise is not a law firm, broker-dealer, investment adviser or funding portal.