crowd funding?

Question

Anyone on bp got involved with crowd funding types of RE investing? I am considering one, so interested to know your thoughts. The person at the other end of the phone call seemed like a thorough gentleman and the numbers look fine too...but experiences and advice are sought..

Jacob Blackett · Answer

Hey Ian- we share our attorney's contact information with everyone who is doing their due diligence when it comes to investing with us. He is with New Jersey based firm Flaster & Greenberg, his name is Mark Roderick.

Like I said, we do not advertise our specific offerings to the public, unless we are using an exemption that allows for that, like Rule 506(c).

IF we decide to offer an investment using Rule 504, then it is only available to our investors who we have established relationships with.

Best regards

Jacob Blackett · Answer

@Ian Ippolito  You kindly registered with us a few months ago and we have exchanged some private messages regarding how Holdfolio works. From your response to @Abhilash Joseph, I want to make sure you understand how we work so there's not mixed messages on the forums about the legality of our platform. My colleague, Rob, addressed some of these details in this thread and I have also attached a message we exchanged a few months back about how we operate.

We do not advertise our specific offerings to the public. Only registered users who we have a relationship with are able to see opportunities to invest with us. As a company we are allowed to advertise our brand & what we do- this doesn't compromise the legality of our private offerings. Our attorney is considered to be one of the top crowdfunding attorney's in the nation, representing dozens of platforms and having a hand in drafting crowdfunding legislation for States such as Texas.

I hope all is well and please let me know if you have any additional questions. In addition to Rule 504, our company is organized to operate using Rule 506(c), & Title III.

Best wishes! Jacob

Rob LaRovere · Answer

Hi Ian,

Holdfolio is organized under Regulation D Rule 504 which allows for both accredited and nonaccredited investors to purchase ownership in the portfolios of homes we have available.  If you simply created an account and logged in you would be unable to see the investments we offer.  However, once touching base with a member of the team over the phone we would be allowed to enable you to see our current project.  We cannot actively seek out new investors and discuss investments unless they are registered users with our platform.  I hope this answers some of your questions.  If you or anyone else on this thread wants to PM me I would be more than happy to go in depth and discuss what we're currently achieving at Holdfolio. Happy Thanksgiving!

Willem Young · Answer

We have spoken with Holdfolio about some business in the past.  They definitely seem to have it together and I like their concept of packaging up a portfolio of properties into a fund.

Ian Ippolito · Answer

Hi Jacob, yes I do remember you sending me that.

I am not an attorney. And at that time, when you sent me that email, I had concerns about how the solicitation was being done. Other companies I know of stay within the anti-solicitation rules by avoiding mentioning anything about the investments and service on the web.  However, you are not only just talking about the service and investments, but doing so in great detail. And I could be incorrect, but I assume that the site is also indexed by Google and available to anyone who happens to search on the topic.

Who is your famous legal counsel, and is he available to explain how this is not considered solicitation?

Ian Ippolito · Answer

Here's my feedback. First, I have never used holdfolio myself, so everything I know about them is simply from looking at their site.1) I logged in with my account to look at their investments and there are not online. On my review site, this would be enough to disqualify them for review as a minimum of three investments is necessary to determine if a company is worth further review or not.

2) I believe that they are making their investments available to nonaccredited investors. However, it is not apparent how they are doing this legally. If they are not soliciting (which appears to be the method they are using), they shouldn't have a website where they tell everyone in the world how their service works. If they get reprimanded or shut down, then what happens to your money?

They only specialize in equity in residential real estate. However, the safest way to create a portfolio is to diversify into different types of real estate (residential and commercial) and different types of investments (equity and debt). Are you accredited or nonaccredited?

James Wise · Answer

Remember you don't have to buy a "turnkey" property when you buy a rental. Especially if you are self managing. Just grab a realtor who is also an investor and look for something in a neighborhood you are comfortable with.

A rental house is a rental house.

Crowdfunding Forums

Abhilash Joseph · Answer

@Rob LaRovere, @Ian Ippolito - I hope the above helps and share if you have any warnings or experiences, both good or bad...I am looking for passive flow, and that is why I am interested in this option. The other option is to go for turnkey properties, but then one has to cough up the markup for the repairs and such...so i think in terms of passive flow, both are similar bets...One is managed by the company while the turnkey can be self managed or handled by a prop.mgmt company.

Abhilash Joseph · Answer

@Jordan BurkeThe site is called holdfolio.com, and i was very pleased with the level of professionalism shown towards my query. One can argue that this could be the bait tactic, but no one is pressuring anyone, everything is perception.

The deals that I was looking at was a ROI of 13% Y-O-Y. And with a possibility to make more returns as the plans are to sell the properties after 3-5 years when a reasonable appreciation of the properties are in sight. I am seriously weighing my options as I have been unable to make the dive yet. The minimum investment is 10K, so for a 10k investment i stand to make about 115 every month cash flow.

crowd funding?

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