The Real Estate market has reopened and investors are everywhere. We review the legal requirements to take on investors and review calculations to make sure you are making the right decisions.
Showing posts with label Real Estate Investment. Show all posts
Showing posts with label Real Estate Investment. Show all posts
Tuesday, June 16, 2020
Tuesday, May 19, 2020
It's time to make lemonade out of those lemons and fill up your half cup of coffee! We have the technology to run businesses remotely and Coronavirus is the motivation for everyone to use it. This means the future will involve a drastic decline in daily office commuting with a corresponding uptick in new real estate investment opportunities. Trendsetters and HGTV Stars Tom and Mickey join us to explore New York's exurban areas that are poised to explode. Plus we break down when to invest and teach you how to time the market before 2021.
Segment 1: How Changing Times Can Make You Money
Show Breakdown (click on links below in order to listen to the full show)
Monday, February 17, 2020
Wednesday, January 07, 2015
Crowdfunding, a way of funding a project from a large number
of individual contributions, has become very popular in the commercial real
estate world as a result of the JOBS
Act of 2012, which eased securities regulations to give small businesses
better access to funding. For example, Fundrise,
a leading crowdfunding website, allows individuals to invest in commercial real
estate projects, such as hotel or restaurant construction, for a low amount of
money, opening up investment opportunities to everyone and not just wealthy accredited
investors.
Now that crowdfunding is on the rise, it is important that
everyone who is looking to invest in a project knows that they are entitled to
certain disclosures under law. Rule 506(b) of Regulation D under the Securities Act is a new rule
as of 2013 which established specific requirements to determine whether or not
a transaction or project is exempt from Securities Act registration.
When securities (i.e. investments) are registered, they provide important
disclosure information to investors, such as a description of the company’s
properties/businesses, a description of the securities, the company’s
management information, and the company’s financials. Under Rule 506(b), some
companies do not need to register their securities if they do not advertise
their securities to the general public and do not sell the securities to more
than 35 non-accredited investors. Therefore, it should be noted that if
companies on Fundrise want certain
transactions or projects exempt from registration, they must be careful not to
sell securities to more than 35 non-accredited investors. However, these
companies, despite being exempt from registration, must still give the same
important disclosure documents and financial information to non-accredited
investors and must answer questions from non-accredited investors. This rule is
in place to protect individuals, who are not as knowledgeable or savvy as
accredited investors, from being victims of fraud or misrepresentation.
If you are thinking of investing in a real estate project in
the near future, remember that you are entitled under law to certain
disclosures about the project and company in question. Regardless of any
exemption, this information must be given to you as long as you are a
non-accredited investor.
Click here
if you would like to know the top 60 real estate crowdfunding platforms.
