SEC Approves Title III of JOBS Act

Richardson, TX · Member since 2015 · 15 posts · 0 votes

Official Release Here:

http://www.sec.gov/news/pressrelease/2015-249.html...

This is huge news for investing. There are literally oceans of non-accredited funds waiting to be sucked up by crowdfunding platforms. Who is taking advantage of this?

In terms of real estate, I have not seen any good real estate crowdfunding sites for non-accredited investors. Such a site I theorize would collect required data from wholesalers and create LLCs to issue securities to fund purchases.

By the way, in return for this idea, I expect anyone who develops such a platform to bring me on as a partner.

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Ben Leybovich

Rental Property Investor · Phoenix/Lima, Arizona/OH · Member since 2012 · 4k+ posts · 4k+ votes

10y

Couple of things are about to happen:

1. This will push TK out, and

2. This will be the catalyst to burst the market

This is amateur hour institutionalized...just like the stock market :)

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Ben Leybovich
Rental Property Investor · Phoenix/Lima, Arizona/OH · Member since 2012 · 4k+ posts · 4k+ votes
10y
Couple of things are about to happen:
1. This will push TK out, and
2. This will be the catalyst to burst the market
This is amateur hour institutionalized...just like the stock market :)
2 Reply
Tim Puffer
Lansing, MI · Member since 2015 · 301 posts · 149 votes
10y
Oh boy... Let's give everyone an opportunity to throw their money at something they don't understand... I see a bunch of phony crowdfunding platforms popping up and taking a lot of money and never actually delivering on what is promised. Wait! We already have that with the gurus!
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Joel OwensBusiness Member
Moderator
Real Estate Broker · Canton, GA · Member since 2010 · 15k+ posts · 11k+ votes
10y
No thanks. I will stick with accredited investors with some level of sophistication.
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Chris Leininger
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Richardson, TX · Member since 2015 · 15 posts · 0 votes
10y
Call me optimistic, but this represents oceans of previously unavailable capital is now available. I have long believed that more capital is a good thing. In fact, an online portal that connects wholesalers to investors would be the most efficient way to use that capital.
Just look at Lending Club as an analogy. Obviously, Real Estate is not a loan; however, the fact that its risk can be measured means it can be analyzed appropriately and communicated to investors.
If anyone would care to discuss problems with bringing such a platform to fruition, please PM. One must hack away at lofty conceptions in order to discover their true form.
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Jim Groves
Lender · Chicago, IL · Member since 2015 · 191 posts · 86 votes
10y
I've never thought this was going to have much impact on real estate as there are many other areas where non-accredited investors can participate. I thought this would be better for the small businesses that can tap into capital from their loyal customer base. But so far even that hasn't gone as planned: http://www.reuters.com/article/us-startups-crowdfunding-idUSKCN0Y92EN
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Bryan Hancock
Investor · Round Rock, TX · Member since 2010 · 8k+ posts · 4k+ votes
10y
The Portals that are allowed to broker these securities are FINRA regulated folks. The bar to apply is pretty high. Don't expect most fly-by-night people to be able to set up legal Portals and don't expect for the illegal ones to last for long.
I agree that sourcing capital this way is a lot less desirable than what you can find with the old regulations. The only people that generally complain much are the non-accredited investors.
It will be interesting to see how all of the enforcement works for these Portals and what types of deals get presented. It surely will have more impact on the venture industry than the real estate industry unless they are successful in upping the maximum and modifying other troublesome pieces of the current law.
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