BiggerPockets

Is anyone following this act? Do you have any input on what it would mean for real estate investors?

The Entrepreneur Access to Capital Act Passes

A new plan to allow ordinary investors to bet on start-ups

House Passes Crowdfunding Bill

I put an email out there to folks I think will know something about this. If they respond I'll post what I know. Since this isn't law yet my guess is people are taking a wait and see approach.

My understanding is that you can raise up to $2M in $10k increments via a reg A placement. That seems like a pretty good source of financing to me. Once you put all of the money to work you could presumably do another raise too.

Activated the link, but lets please keep this thread on topic of Bryan's questions about this new legislation. Please start a new thread if you want to discuss this woman's situation.

Here is a YouTube video on this:

Crowdfunding Proposal

Very cool stuff...

Good question Carlos...not really sure. I guess you would just have to be the best or seek big pools of capital if the IP was what you were marketing.

Seems like a great idea from Washington.Would especially help if you are trying to purchase SFR and MFR properties.@ Bryan Hancock. Let me know if this actually becomes law.

Interesting. The youtube link Bryan supplied provides a 'hint' of how this concept will be implemented. The platform 'vision' reminds me more of incumbent microloan providers like Kiva or P2P lending platforms like prosper or lendingClub... except they overlook that this is an equity offering, as opposed to debt or secured lending.

Seems like the issuer still needs to follow SEC Rules and Regulations (e.g. S-K, S-11, audited financials, etc.) and this regulatory "baggage" is non-trivial.

Implementation wise for real estate, I guess if you have already created an S-11 you would add the 'Crowdfunding Exemption' and its requirements (e.g. the 'interactive' website component for self issuers...) It will be interesting to see if the SEC adds a method to expedite filings or otherwise relaxes existing filing requirements, with the goal being to allow an issuer to quickly reach the effective date for registrations with the Crowdfunding Exemption.

@Bryan Hancock That's a pretty good summary. What I really dislike about some of these bills is the perception from our congressmen that these arbitrary caps (e.g $500) on an investor's investment should be based solely on a percentage of income. This bill excludes some high net worth accredited investors which is counter intuitive and unfortunate.

The fix is easy: change `(B) if the investor has an annual income of-- to `(B) if the investor is not an accredited investor and has an annual income of--

Text of bill

What is even dumber is that we think we need someone legislating what we are ALLOWED to invest in. Why should the best investments be restricted to those that are "wealthy" according to some arbitrary figure?