Posts tagged "crowdfunding"

JC 066: Crowdfunding 101: Just the Facts with Mark Roderick

May 8th, 2019 | no comments

Crowdfunding for real estate investors

Mark Roderick is one of the leading Crowdfunding and Fintech lawyers in the United States. Mark speaks across the country representing cross industry participants, expanding on his in-depth knowledge of capital-raising and securities law. Mark represents many portals and other players in the Crowdfunding field. He writes a widely read blog, crowdfundattny.com, which provides readers with a wealth of legal and practical information for portals, issuers and investors.

Mark Roderick joins John Carney today in The Real Estate Locker Room to discuss Crowdfunding and how to arm you with the knowledge to close the deal.

Five Key Points:

  1. Crowdfunding is using the Internet to raise capital and usually only happens when the market is up.
  2. There are 3 flavors of Crowdfunding (Titles refer to different sections) and for the 1sttime in US history, you may advertise all Titles.
    1. Title 2 – Very popular and an active option. Only one rule: only accredited investors can participate. This is based on the foundational principles in American Security laws from the 1930s.
    2. Title 3 – Brand new to the US security laws. Non-accredited investors can participate. However, it does not require FCC approval unlike Title 4. This is an experiment to test if the accredited investors will “fleece” non-accredited investors. Title 3 has many regulations, limits the amount of money you can raise, how much each person can invest (very small amount), among other things.
    3. Title 4- Similar to public offer. Non-accredited can participate but will have to jump through hoops and regulations. Similar to miniature public offering.
  3. The easiest way to approach the Crowdfunding market to already have success and have completed many deals through private clients. Then you can go to the top real estate Crowdfunding sites who already have investors registered.
  4. How do you get a standard rate of return and how do you safeguard it?
    1. Invest only at trusted sites.
    2. Invest in someone who is smarter than you. Use a real estate professional who has vetted the site you want to use and the deal.
    3. Invest in a fund instead of a single deal.
    4. Invest in a reputable site and get some diversification.
    5. Start with accountant and find a great lawyer.
  5. Rate of return and investor offering or receiving: depends on the asset class. Projected returns are going down due to a mature market.

Favorite Sports:

  • Baseball
  • Football
  • Basketball

Favorite Athlete:

  • Roger Maris – Baseball
  • Mickey Mantle – Baseball
  • John Havlicek – Basketball
  • LeBron James – Basketball
  • Tiger Woods – Golf
  • Michelle Chiffon – Skiing
  • Lindsey Vonn – Skiing

Favorite Books:

Thomas Jefferson A Brief Biography by Dumas Malone

Pro tip:

  • Work on what you’re bad at.

Resources Mentioned:

Reach Out to Mark Roderick:

  • Blog: Crowdfundattny.com
  • Twitter: CrowdfundAttny
  • Facebook: GoFlaster
  • Bookings: Bookings@thetalentsquad.com

Thank you Mark Roderick for taking the time to share some actionable advice on crowd funding with the audience.

Listen to all the episodes of The Real Estate Locker Room Show and sign up for my FREE monthly newsletter at www.johncarneyonline.com

Connect with John Carney
Facebook: @JohnCarneyOnline
Twitter: @John_M_Carney
Instagram: @johnm_carney

 

© John Carney 2019

 

JC 030: Raising Money and Crowdfunding with Amy Wan

November 1st, 2017 | no comments
How to raise funds to pursue large real estate investments 

Amy Wan is the Founder & CEO of Bootstrap Legal, a business that automates the drafting of legal paperwork for real estate private equity, syndication, and crowdfunding deals. Prior to founding Bootstrap Legal, Amy was a partner at Crowdfunding Lawyers and General Counsel at Patch of Land a real estate marketplace lending and crowdfunding platform. Amy was also named one of the Top 10 Women to watch in Legal Tech by the American Bar Association Journal and was nominated for Corporate Counsel of the Year Award by LA Business Journal.

Amy founded Bootstrap Legal as a means to fill the gap in accessibility to legal services. Her company aims to make it more affordable for aspiring entrepreneurs who don’t have a trust fund or roll with the rich crowd to prepare the necessary paperwork. Their services apply artificial intelligence to the drafting of legal documents for those looking to raise capital – especially those looking to get into real estate.

Five Key Points:

  1. Money is universally translatable and universally respected.
  2. An accredited investor is basically a “wealthy person” who has money to lose.
  3. Whenever you are selling a security, you always want to disclose everything.
  4. Disclosure is important because the SEC doesn’t care what you sell. What they do care about is giving investors all the information they need.
  5. Lawyers are good investments for real estate investors. They draft documents to protect clients like you.

 

Favorite Athlete:

Favorite book:

Pro tip:

  • Lean on your network of family and friends, and people who support you and believe in you.

Reach Out to Amy Wan:

Thank you Amy for taking the time to share your expertise on real estate syndication with us.

Listen to all the episodes of The Real Estate Locker Room Show and sign up for my FREE monthly newsletter at www.johncarneyonline.com

Connect with John Carney
Facebook:@JohnCarneyOnline
Twitter: @John_M_Carney
Instagram: @johnm_carney

 

© John Carney 2017