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Real Estate Sydicate/Crowd Funding
I recently started using Real Estate Syndication. I am very close to having all of the systems in place to open many more deals to lots of investors. Because of certain securities laws and laws pertaining to accredited investors I am worried I may not be able to scale as quickly as possible. Does anyone know how Realtyshares.com gets around these regulations? It seems as though they are selling equity stakes in property and taking a carried interest. Any insight to how they run there real estate syndicate business would be greatly appreciated.
Most Popular Reply
Real estate syndication is nothing new. The hype around this industry right now is simply that certain companies have taken the model online and are building technology around it to make it more efficient. There's nothing wrong with doing it the old fashioned way though, and that's what many real estate developers have done in the past to fund their own deals. Realtyshares' goal is different--they're an originator and their goal is to facilitate the funding of others' projects, not their own. Either way, you need to be compliant with securities regulations.