Learn More About the Difference Between Real Estate Crowdfunding on Websites versus Do-It-Yourself Crowdfunding

About The Conference:

iGlobal Forum is pleased to present the 4th Real Estate Crowdfunding Summit, taking place in Los Angeles on Thursday, June 23rd. Real estate crowdfunding is on a roll as the pool of potential investors has expanded exponentially with the addition of non-accredited investors to the mix. With all JOBS Act regulations now in effect, the ultimate question is whether we’re on track to realize the hopes and dreams of real estate crowdfunding, and what the future holds. Here we highlight the challenges and opportunities put forth with the new regulations, and analyze how to use each flavor of crowdfunding to find the best risk-adjusted returns within the real estate market. The Summit will explore what each side of the industry is looking for from the platforms, and ask the question on everyone’s mind: how will they respond in a downturn market? The event will provide the opportunity to meet and network with 150+ senior-level executives from leading: real estate developers & owners, crowdfunding platforms, private equity firms, hedge funds, family offices, broker/dealers, RIAs, investment banks, institutional investors, asset managers, and high-net-worth individuals.

Event Details

June 23, 2016

8:00 am – 4:30 pm PST

Register Here

Our Speaker:

Laurie Thomas Vass

President, The Private Capital Market Group, Inc.

Use code SPKRLTV for an exclusive discount for my contacts.

UNDERSTANDING THE BENEFITS OF A REG D RULE 506(C) PRIVATE OFFERING FOR REAL ESTATE DEVELOPMENT FIRMS [SECTION 3 of a 4 Part Article]]

UNDERSTANDING THE BENEFITS OF A REG D RULE 506(C) PRIVATE OFFERING FOR REAL ESTATE DEVELOPMENT FIRMS [SECTION 3]

Crowdfunding

 

As a beginning note of caution, the world of crowdfunding is in a great state of flux and uncertainty. There are no accepted terms of usage to describe this new industry, and very few commonly-held assumptions about what the term means. Participants and firms enter and exit the industry with alarming frequency, and some of the very best of the breed up and leave the industry, with no advance warning, as is the case with Fundrise, which left crowdfunding to focus on creating and issuing REITs.

Read more

 

http://www.crowdsourcing.org/editorial/understanding-the-benefits-of-a-reg-d-rule-506c-private-offering-for-real-estate-development-firms-section-3/66458

UNDERSTANDING THE BENEFITS OF A REG D RULE 506(C) PRIVATE OFFERING FOR REAL ESTATE DEVELOPMENT FIRMS [SECTION 2 of a 4 Part Series on Accredited Investor Crowdfunding]

CrowdSourcing.org

 

UNDERSTANDING THE BENEFITS OF A REG D RULE 506(C) PRIVATE OFFERING FOR REAL ESTATE DEVELOPMENT FIRMS [SECTION 2]

 

Editor’s Note: The following was written by Laurie Thomas Vass, a registered investment advisor, and regional economist. Vass manages The Private Capital Market, a crowdfunding platform. Guest contributors’ opinions are their own and do not necessarily represent the views of Crowdsourcing.org

Seeing The Reg D Offering From Your Company’s Perspective as an Issuer of Private Securities

The reason that terms like “cap rate” and IRR are used in many investment documents related to real estate is that these terms have much more significance to real estate professionals than they do to investors.

Real estate professionals usually begin their analysis by trying to figure out:

  1. How to put as little of their own capital into the deal as possible,
  2. How to receive the same preferred return as investors on the firm’s own invested capital in the deal,
  3. How to structure the deal to receive a “promote” (carry) share of the remaining cash flow and profits,
  4. How to receive a commission related to property acquisition, plus fees related to loan financing and property management,
  5. How to receive some share of the tax benefits related to the real estate deal.

Understanding The Benefits of A Reg D Rule 506(c) Private Offering For Real Estate Development Firms [Section 1]

Editor’s Note: The following was written by Laurie Thomas Vass, a registered investment advisor, and regional economist. Vass manages The Private Capital Market, a crowdfunding platform. Guest contributors’ opinions are their own and do not necessarily represent the views of Crowdsourcing.org.

 

Understanding The Benefits of A Reg D Rule 506(c) Private Offering For Real Estate Development Firms [Section 1]

Introduction: Seeing The Real Estate Reg D Offering From The Perspective of Potential Investors

One way to view the topic of real estate crowdfunding is to begin the analysis by seeing the investment from the perspective of a potential investor. Imagining how the investor views real estate investments, compared to all other investment alternatives, is useful because it provides an insight into how investors may select either a real estate crowdfunding website or a direct corporate private offering to complete their investment decision.

Imagining the investment from the perspective of the investor is also an essential mental exercise for all commercial real estate brokers and CEOs who are contemplating a Reg D Rule 506(c) offering. The new SEC rules authorize the CEO to issue securities, on behalf of the company, and part of the successful raise requires that CEOs become the best securities salesperson the company has ever seen.