b'Chapter 8Federal Securities Exemptions You Need to KnowFederal Securities Exemptions Overview Therearethreeprimaryfederalexemptionsfromregistrationunder what is called Regulation D. Regulation D includes both Rules 504 and 506.4 The most widely used federal exemption is Regulation D, Rule 506, because it pre-empts (overrides) state securities lawsmeaning you only have to follow one set of rules in order to sell securities in any state. Under RegulationD,therearetwooptionsoneallowsadvertisingandone doesnt. The details are discussed in a following chapter. Rule 504 is less widely used than Rule 506 as it requires state pre-approvalbeforesecuritiescanbesold.Ifyoufollowoneofthese exemptions, you dont have to file periodic reports with the SEC as would be required for a registered reporting (i.e., public) company.This chapter discusses specific securities exemptions that you can use to scale your real estate investing business when raising capital from private investors.4TherewaspreviouslyaRule505,butitwasrepealedasofMay22,2017.50'