The Statute of Liberty was not funded by the US government! Shocking isn’t it?\u00a0\u00a0The Statute of Liberty is the \u00a0beacon of crowdfunding success as the statute was erected through contributions from the citizens of France and the United States.<\/p>\n
Crowd Funding is an old concept that dates backs to 3,000 B.C. The raising of capital from a crowd via an online \u00a0portal started a few years back\u00a0with Kiva.com<\/a> and a revolution of crowd funding started taking hold which is full swing within the startup world today. I started thinking of how this could apply to the hurdle of raising money from private capital investors that seems to hold back most investors from advanced strategies of commercial, multifamily and buy & hold investing<\/a>.<\/p>\n Crowd funding is taking the power of the crowd to raise capital (debt and equity) in exchange for equity ownership. \u00a0 Mohammed Yunis, the father of microfinance, \u00a0laid the foundation for crowdfunded investments. Microfinance focuses on small loans, typically in the $ 300 to $ 500 range, to entrepreneurs (mainly women) in the developing world.\u00a0The core tenets of microfinance and crowdfund investing are similar: Both systems are about getting capital in the hands of people who have trouble raising it via traditional means, so those people can start and grow their businesses.\u00a0Out of microfinance and Kiva sprouted donation- and perks-based crowdfunding websites.<\/p>\n Title III of the JOBS Act, creates the opportunity for\u00a0 crowdfund investing by using the term emerging growth companies (EGCs) to refer to entities that are most likely to utilize this form of financing.\u00a0ECG helps\u00a0\u00a0make crowd funding\u00a0investing a real possibility.\u00a0Prior to the passage of the JOBS Act, accredited investors (people with high net worths and\/ or incomes greater than $250,000) often were the only ones who could invest in private debt or equity transactions. One of the biggest changes the JOBS Act created was lifting the restriction on soliciting unaccredited investors to purchase stock. This means that companies that use\u00a0\u00a0crowdfund investing to raise capital are legally able to solicit people of all net worths and income levels to purchase their shares.<\/p>\n The JOBS Act allows you the following maxims when it comes to soliciting for investments online:<\/p>\n The intent of JOBS Act is that if you want to raise money to start or grow a business, you can do so by soliciting funds from people who know you via an online portal. The act’s maxims are still being \u00a0codified into regulations by the SEC so be careful to not jump the gun in terms of approaching these investors as these maxims may change once the regulation comes into reality by SEC.<\/strong><\/p>\n Crowdfunding portals have evolved for all business segments and purposes. The most popular online portals are Kickstarter.com, Indiego.com, and GoFundMe.com but online portals for real estate were slow to come out. Over the past 24 months, online portals for real estate funding have started to make it into the limelight. I have been researching on these portals and found two\u00a0portals \u00a0that I believe are worth your consideration:<\/p>\n Crowdfunding portals can be a great way to raise capital for your deals \u00a0as real estate investors or if you are a capital investor you can find new investment deals to place your capital.<\/p>\n Happy Investing!<\/p>\nWhat is Crowd Funding<\/h2>\n
How is this Legal<\/h2>\n
Who Are You Allowed to Solicit<\/h2>\n
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Real Estate Crowdfunding Portals<\/h2>\n
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