New SEC Rule Means Real Estate CrowdFunding

Design-led housing developer breaks world record for equity crowdfunding

By Colleen M. Sullivan

Can the Security and Exchange Commission’s (SEC) new crowdfunding rules prove a boon for real estate?

Jilliene Helman sure hopes so.

After years of working as an investment advisor and wealth manager, “I sort of started seeing this pattern. Our wealthiest and most successful clients were all real estate investors,” she says. She’s now hoping to bring a taste of that success to the masses.

Crowdfunding is a mechanism which leverages the power of the Internet to help get new projects off the ground using contributions from hundreds or thousands of small investors. In a mere four years, Internet startup Kickstarter has become a multi-million dollar company by riding a tidal wave of other people’s money, becoming the go-to platform for creative types like artists and designers looking to fund their next album or create a new iPhone case.

But while Kickstarter is aimed at funding single projects, many observers are just as excited about crowdfunding’s potential to help launch new companies – and now, thanks to new rules loosening the reins of financiers, entrepreneurs like Helman are hoping to bring that same model to real estate.

For decades following the Great Depression, the SEC kept a gimlet eye over the investment world, requiring that investors in certain risky asset classes be “accredited” – that is, that they met certain high net worth and/or income requirements. Accredited investors were presumed to be sophisticated and familiar enough with investing that they understood the risks they were taking, while companies looking to offer stock or other securities to the general public faced much greater scrutiny and stricter regulations.

Last year, however, Congress passed the Obama administration’s JOBS Act, which loosened many of those restrictions, paving the way for new companies to use crowdfunding to generate equity.  Helman’s company, California-based Realty Mogul, is planning to use the model to fund new commercial and residential developments.

– See more at

http://www.bankerandtradesman.com/news157214.html

HEADLINE NEWS

Baltimore SunHarford still opposes crowdfunding sites for school donationsBaltimore SunRaising money through online crowdfunding sites is an ideal way for teachers to find the funds to purchase classroom materials and should be restored, the head of the Harford County teachers' u [...]

U.S. News & World ReportNo Cash for Hate, Say Mainstream Crowdfunding FirmsU.S. News & World ReportThe block on mainstream crowdfunding is just the latest blow to far-right activists operating online. In the last 24 hours, neo-Nazi website the Daily Stormer had its domain regi [...]

LITTLE GUIDANCE FROM IRS ON TAXING CROWDFUNDING CONTRIBUTIONSBloomberg BNAWhether it's a musician raising money to produce an album, an inventor with a great idea, or a family in distress that needs help, crowdfunding through platforms such as Indiegogo and Kickstarter has become [...]

Crowdfunding: Funding ideas the right wayReuters (press release) (registration)The term “crowdfunding”, or “crowdsourcing”, refers to an open call made to the world via the Internet to solicit funds from interested parties to finance a business or social project. The funds received ma [...]

Crain's Cleveland Business'Smaller' gifts can go long way for Clinic's crowdfunding platformCrain's Cleveland BusinessFor an institution accustomed to securing multimillion-dollar donations, Cleveland Clinic's latest fundraising effort has some relatively [...]

What do you think of crowdfunding campaigns?Japan TodayI think that if there is a responsibility and guarantee of sorts that the crowdfunding site will actually act with the users to go after companies which waste money or run off with it, then it would be a great thing for the future [...]

ForbesWhat Works In Equity Crowdfunding -- Insights From ResearchForbesAs we have recently celebrated the fourth anniversary of the signing of the JOBS Act into law, it is a good time to take stock of the effect that the legislature had on equity crowdfunding in the United States. It [...]

VentureBeatAmid Silicon Valley crackdown on alt-right, Gab social network ...VentureBeatAs high-tech firms have begun taking steps to weed out some of the most offensive right-wing hate groups, alternative social network Gab has seen a surge in ...Gab is becoming a haven for hate spee [...]

FortuneIndiegogo's Difficult Path to Offering Equity CrowdfundingFortuneIndiegogo founder Slava Rubin discusses how Indiegogo's equity crowdfunding service has been performing since its launch in 2016. Photograph by Indiegogo. E-mail; Tweet; Facebook; Linkedin. Share icons. [...]

The HinduKoodiyattam centre goes for crowdfundingThe HinduThe goal is to raise the sum through the crowdfunding platform BitGiving (https://www.bitgiving.com /nepathya) to train a new generation of artistes in what constitutes the only surviving form of ancient Sanskrit theatre in the [...]

CFB Finance

Marketwired

  • Crowdfunding
  • Crowdfund
  • Peer to Peer Lending
  • FinTech
  • Reg A+
  • Reg CF
  • Crowdfunding USA

Press Release

Live Crowdfunding .tv

What's Next Step in Regulation A+ JOBS ACTS Title IIII :L Interview : Steve Cinelli with Brian Korn Securities and Crowdfunding/Peer-to-Peer Lending Lawyer, Watch more video library | Conference | Interview | Campaign Showcase | Research | Education |