Real Estate Crowdfunding As Lucrative Investment

Real Estate Crowdfunding As Lucrative Investment

National Association of Realtors:
Crowdfunding: Rules, Regulations, and Real Estate

AUGUST 8, 2016

“Crowdfunding” has been a buzzword among investors and entrepreneurs for several years now, often bringing to mind successful startups, movie projects—and even a potato salad—made possible by online donations from people around the world who believe in an idea. In exchange, these investors often receive a token from the project: a tee-shirt, tickets to a premiere—even a bite of the salad.

Equity crowdfunding, however, is a more buttoned-up affair, and refers to the online offering, through a platform or portal, of private debt or equity securities to a group of people for investment. In return, those investors get equity or debt investment in the commercial enterprise. is was made legal by the Jumpstart Our Business Startups (JOBS) Act of 2012, Title III of which allows for equity crowdfunding when conducted by a licensed broker-dealer or via a registered funding platform. rough crowdfunding, a company can raise up to $1 million in a year, from both accredited and non-accredited investors. 1 Because it involves investments into commercial enterprises, crowdfunding is subject to regulation by the Securities and Exchange Commission (SEC). Crucial to attracting investors (especially those who are unaccredited), the JOBS Act also allows for a form of “general solicitation,” allowing companies to give notice directly to the public about the existence of an offering.

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Man Made Laws Will Change!

Man Made Laws Will Change!

Mr. Harris informs each applicants that this is just to good!  They will change it! Testing the Waters Issuers would be able to solicit interest prior to actually spending money on lawyers and accountants. Given that companies must brace themselves for…

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