Reg D 506(c) offering

Tax, SDIRAs & Cost Segregation
9yFollow

Reg D 506(c) offering

Brian C.
Investor · Thousand Oaks, CA · Member since 2014 · 43 posts · 8 votes
I'm exploring the possibility of using a 506c offering to raise money from accredited investors for our new global real estate fund. Does anyone have advice and any idea of the legal/startup costs for this type of offering? Our plan is to raise money from our existing investors and use advertising to raise money from new investors through email marketing, google PPC, social media and other strategy advertising. Thanks! Brian
0Reply
104 views

Most Popular Reply

Jillian Sidoti
Professional · Murrieta, CA · Member since 2013 · 405 posts · 458 votes
9y

Everyone - I would recommend a minimum of NO LESS THAN $10,000. It's always those small investors that are the most trouble. Most of our minimums are $25,000 to $50,000. I just did one offering with a $250,000 minimum.

3Reply
See this reply in the discussion

31 Replies

Jump to latestLatest
  • Amy Wan
    Attorney · Los Angeles, CA · Member since 2016 · 284 posts · 314 votes
    9y

    To answer @Ian Ippolito's question in the most unsatisfying way, the answer is 'it depends.' Every person, every company, is different. There is not one-size-fits-all marketing strategy. For a lot of folks with personal RECF platforms, the tech makes investing easier and helps with conversion, but it doesn't market per se. The real answer for those without VC backing or a multi-million marketing budget is ABN-- always be networking ;) and speaking. And doing thought leadership.

    1Reply
  • Ian IppolitoBusiness Member
    Investor · Tampa, FL · Member since 2015 · 1k+ posts · 1k+ votes
    9y

    Thanks @Amy Wan.

    The Real Estate Crowdfunding Review
    View Page
    0Reply
  • Bryan Hancock
    Investor · Round Rock, TX · Member since 2010 · 8k+ posts · 4k+ votes
    9y

    Content generation and networking are certainly important, but most sponsors are quite busy and any time they invest in these activities they're not investing in operating and managing their deals.  As you grow it becomes increasingly difficult to keep all the plates spinning.  Nothing beats old school networking, but this high touch marketing comes at a high cost for most sponsors.  It's simply less efficient.  

    Crowdfunding affords one the ability to increase their scope considerably.  We have had investors in our projects from all over the globe and would never have been able to establish those relationships by networking the way we have historically found new investor relationships.  

    Crowdfunding also allows relationships to bloom at lower investment amounts so that the stakes aren't as high as they'd be using offline techniques.  Software facilitates this process such that small subscriptions are worthwhile.   

    The platforms that exist today think their site is the hub of the universe.  To investors and sponsors their site is one of many possible channels to develop relationships.  These relationships can blossom from all sorts of other channels using many different marketing techniques.  What sponsors WANT is to develop these relationships at the lowest cost and for their marketing program to identify very precise investor personas.  That is why things will be different for everyone.  Other factors like track record, what you're offering, etc. all play into these costs as well.

    0Reply
  • Jesse Khera
    Member since 2018 · 1 post · 0 votes
    5y

    Out of curiosity, do you work with a Broker/Dealer, or have a B/D relationship?

    0Reply
Join the conversationCreate a free account to reply, vote on answers and follow this thread.
Log InJoin for Free