b'Rule 506(b)The Friends and Family Exemption In a Regulation D, Rule 506 securities offering7, an issuer may sell their own securities in any state without:Registering the securities offering, orBeing registered with the SEC or any state as a broker-dealer (see Chapter 26). For a wall chart comparing Federal Securities Exemptions, go to our book bonus page: https://RaiseCapitalForRealEstate.com/BookBonus Requirements The requirements for the Rule 506 private placement exemptions can be foundunderRegulationD(17CFR230.501etseq.).Asummaryis provided below:In general, under the original Rule 506now known as Rule 506(b)an issuer of securities has a safe harbor as long as they can prove through internal documentation and regulatory filings how they followed the rules of the exemption. Internal documentation is typically done using customerrelationsmanagementsoftware(CRM),oraninvestor 7Rule504andRegulationA+Offeringsmayrequirethatissuersobtainabroker-dealerlicenseatthestatelevelincertainstatesthatrequireit.56'