How to Raise Money for a Real Estate Deal on Social Media Without Breaking Securities Law
Troy Buckholdt
You can raise capital for a real estate deal on social media, but only through an offering that allows public marketing. For most creators and small sponsors, that's Rule 506(c): you can post about the deal anywhere, but every investor must be accredited and you must verify it. Your posts also count as offering material, so they can't promise returns or downplay risk.
Can you advertise a real estate syndication?
Yes, under Rule 506(c). The SEC allows general solicitation in a 506(c) offering as long as every buyer is accredited and you take reasonable steps to verify it. A 506(b) offering can't be advertised at all, so a single public post can cost you that exemption. See 506(b) vs. 506(c).
Non-accredited audiences can only invest through other routes, like a Regulation Crowdfunding offering of up to $5 million in 12 months, which must run through a registered funding portal or broker-dealer.
Why your posts are part of the offering
In Pino v. Cardone Capital, the Ninth Circuit held that "a person can solicit a purchase, within the meaning of the Securities Act, by promoting the sale of a security in a mass communication." The case involved Instagram posts and YouTube videos. In March 2026, a federal district court certified a class of investors in two Cardone funds. Trial is scheduled for March 9, 2027, and the claims haven't been decided.
The lesson for creators: every Reel, video and caption about a live deal can be used as evidence of what you promised.
What can you say in a post about your deal?
| Do | Don't |
|---|---|
| Say the deal is for accredited investors only | Promise or guarantee returns ("double your money") |
| Link to one deal page with the full terms and risks | Quote projected returns outside your offering documents |
| Disclose that you're a sponsor and how you're paid | Call the deal safe or risk-free |
| Show your full track record, including losses | Promote someone else's deal for pay without being a sponsor |
| Describe the property and the business plan plainly | Ask anyone to wire money anywhere but escrow |
Here's the difference in practice:
- Risky: "Guaranteed 15% returns on our new apartment deal. DM me to get in before it fills!"
- Better: "We're buying a 64-unit apartment building and raising from accredited investors under Rule 506(c). Full terms, fees and risks are on the deal page. Investing involves risk, including loss of your investment."
The SEC's own investor alerts list "promises of high returns, with little or no risk" as a classic warning sign of fraud, so posts that sound like that also scare off careful investors.
What if someone else promotes your deal?
Section 17(b) of the Securities Act bars anyone from promoting a security for pay without "fully disclosing the receipt, whether past or prospective, of such consideration and the amount thereof." In October 2022, Kim Kardashian agreed to pay $1.26 million to settle SEC charges after she was paid $250,000 for an Instagram post about a crypto token and didn't disclose it.
Disclosure isn't the only issue. If the promoter is paid per investor or per dollar raised, they may be acting as an unregistered broker. See how creators and capital raisers can be paid.
A 6-step social media raise
- Choose 506(c) and get your offering documents in place before you post about the deal.
- Build an accredited-only list. Make the accredited requirement clear on every signup page.
- Write posts from approved language. Keep projections and return targets inside the offering documents.
- Send everyone to one deal page with the terms, fees, risks and documents.
- Verify every investor before you accept their money. See accredited investor verification.
- Keep money in escrow until closing, so a deal that doesn't close returns investors' money.
How DoorRaise helps creators raise compliantly
DoorRaise gives creators one link for their apartment deal and a storefront for every deal they sponsor. Investors verify, sign and fund escrow from that page. Our posting rules apply to every public deal, and every deal page will show the same fee card and the sponsor's track record, checked against closing statements, including losses. Creators without operating experience partner with an experienced operator as co-sponsors.
DoorRaise isn’t open to the public yet.
Built for apartment buildings with 5 or more units: one link for the deal, escrow until closing and a standard fee card.
FAQ
Can I post about my real estate syndication on Instagram or YouTube?
Yes, if the offering uses Rule 506(c) and every investor is accredited and verified. Posting about a 506(b) offering is general solicitation, which 506(b) doesn't allow.
What counts as general solicitation?
Broad public marketing of an offering, such as social media posts, public videos, ads or a public webpage, to people you don't have a pre-existing, substantive relationship with.
Can I share projected returns in a post?
Keep projections inside your offering documents, with their assumptions and risks. Return claims in posts can become evidence in a lawsuit, as in Pino v. Cardone.
Can I pay an influencer to promote my deal?
They must disclose the payment and its amount under Section 17(b). DoorRaise's posting rules don't allow paid promotion by anyone who isn't a sponsor of the deal. Paying them per investor or per dollar raised also raises broker-dealer issues, so talk to a securities attorney first.
Can non-accredited followers invest in my deal?
Not in a 506(c) deal. They can only invest through an offering that allows them, such as Regulation Crowdfunding or Regulation A.
Sources
- SEC, Rule 506(c)
- Pino v. Cardone Capital, Ninth Circuit opinion, Dec. 21, 2022
- Pino v. Cardone Capital, court-approved class notice
- SEC order, Kim Kardashian (Section 17(b))
- SEC press release 2022-183
- Investor.gov, 10 red flags of unregistered offerings
- 17 CFR 227.100, Regulation Crowdfunding limits
- SEC, guide to broker-dealer registration
- DoorRaise, posting rules
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.