IMPORTANT! This article is provided as an information resource only. We highly advise that you do not mail to Georgia recipients until you consult with your attorney how Ga. Code § 10-1-393.19 may affect you and your investment marketing strategy.
Overview
It has come to our attention that a new Georgia law that took effect on May 1, 2024 regulates direct mail solicitations for real estate investors who are not licensed real estate professionals. This law requires specific verbiage and formatting for mailers, with severe penalties for non-compliance, including fines up to $50,000 and potential criminal charges.
Key Requirements
Some key requirements of this law are:
- Required Disclosure Statement on Mailers
All mailers must include the following statement in large, 16-point type font:
THIS IS A SOLICITATION. THE SENDER IS CONTACTING YOU TO INQUIRE AS TO YOUR INTEREST IN SELLING YOUR HOME OR OTHER REAL ESTATE. YOU ARE UNDER NO OBLIGATION TO RESPOND. - Placement and Formatting of Disclosure
- For letters, the statement must be on both the envelope and at the top of the letter.
- For postcards, the statement must be at the top of the postcard.
- A 2-inch white space must surround the statement to ensure it stands out.
Implications For Land Investors Sending Direct Mail To Georgia Residents
First, it is highly advisable that you consult with your attorney regarding this law and how it relates to your land investment business. Some options to consider are:
- Stop Direct Mail Campaigns To Georgia Recipients: You may want to simply stop direct mail campaigns or exclude Georgia residents from your direct mail campaigns.
- Add Required Disclosures and Accept Likely Lower Response Rates: Adjust the mailer or document template that you send out to Georgia residents to comply with their new state regulations. Here is an example of how it could look on a letter:
Here is an example of how it could look on an envelope:
- Obtain a Georgia Real Estate License: Since this law seems to be directed to any person or entity that is not licensed, obtaining a real estate license in Georgia may be a way to gain compliance.
Again, it is highly advisable that you discuss these options and other possible solutions with your own attorney.
At this time, our Investment Dominator built-in templates are not compliant with these new regulations and therefore below are instructions on how you can exclude Georgia residents from your mailing campaigns.
How To Exclude Georgia Residents From Your Campaigns
To avoid the complexities of the new Georgia law, you can exclude Georgia residents from your campaigns using the Investment Dominator CRM. Here’s how:
Step 1: Create A Custom Status and Tag
- Follow the instructions in this article to create a new custom status in your system that you can move property records owned by Georgia residents to: https://guides.investmentdominator.com/how-to-create-a-custom-status-for-land-investing/
- Additionally, you follow instructions on how to create a tag to identify these property records owned by Georgia residents: https://guides.investmentdominator.com/how-tags-and-tagging-records-work-in-the-investment-dominator-crm/
Step 2: Identify Georgia Residents In Your System
- Use our Advanced Search feature to identify records where the Mailing State equal Georgia or GA: https://guides.investmentdominator.com/how-to-tag-records-and-execute-advanced-searches/
Step 3: Move Properties Owned by Georgia Residents into Custom Status
- Move property records that you identified as being owned by Georgia residents in Step 2 above to the custom status you created in Step 1.
NOTE: The important part about this step is ensuring that the property record is no longer in the default “Prospect” status.
How To Create A Custom Document for Georgia Residents
If you would like to create a separate custom document template that you can use for Georgia residents that are more compliant than our standard templates still complete Steps 1 through 3 above and then create a custom document and attach that custom document to the custom status that you created in Step 1.
Step 4: Create and Attach Custom Document To Custom Status
- Follow the instructions in this user guide article to create your own custom mailer using and then attach that custom document to the status you created in Step 1: https://guides.investmentdominator.com/how-to-create-custom-letters-and-documents/
Conclusion
In summary, the new Georgia direct mail law presents significant challenges for land investors that invest in Georgia. However, by understanding the requirements and adjusting your strategies accordingly, you can continue to run effective campaigns. Whether you choose to exclude Georgia residents from your campaigns or obtain a real estate license, adapting to these changes is crucial for ongoing success in the land investment business.