All Forum Posts by: Jillian Sidoti

It's fake. Don't buy. If you can't underwrite it conservatively, then don't buy. The deal has to work. It has to have at least potential to cash flow. Wait. There will be plenty of opportunities. Maybe it won't be the same level of opportunity as 2010 because of the lending and fluctuations with interest rates, but there will be an opportunity nonetheless. This is not sustainable as renters don't have the money to have "rents pushed" on them over and over again. You can push your rents all you want, but if renters can't afford it, what good does it do? 

Also, the claim is that there is a shortage of available properties. This is true and not true. Our population growth is less than 1% per year and has been going down since about 1998. prior to that, it wasn't more than 2% per year. 

I practiced securities law for almost 15 years and prior to that syndicated my own deals. I am now back to doing deals and helping people figure out how to raise money for their deals. 

To this end, I don't know who you spoke to or if there might be a misinterpretation but you do not need a securities license to market your own deals or your own company. There is an exemption under 3(a)(4)(1) of the securities exchange act of 1934. Also, under 506(b), focus on marketing your COMPANY not your OFFERING. This will make all the difference. 

A substantive pre-existing relationship is "intimate knowledge of one's financial ability to invest." This is not FB friends at all. You can achieve this relationship with an investor qualification form.

HI Austin there is a gentleman named DAN MILLEN that you might want to talk to. I am not sure he is here on BP, but if you click the link in my signature - he is in that group and very active. Also, there are a ton of people in Atlanta, so you should be able to find someone. Best of luck!

Yes. Tons. I also invest in non-real estate crowdfund deals. I also invest in real estate through syndications and funds.  

I have invested in the following platforms: Crowdstreet, Realty Mogul, Fundrise, and Groundfloor. 

It really depends on what you are looking for. Probably the most consistent has been Fundrise in terms of returns and reporting. I have not invested on CS in a while and don't intend on it. The deals on Groundfloor have become, for me, a little thin and uninteresting. 

Do you have a specific deal you are trying to get underwritten?

@DeWitt Gibson - do you want people to invest in individual deals or do you want to do a fund? 

My first recommendation would be "do a fund." But if this is not your cup of tea, and you want investors to have their choice of asset, then create one document using a series LLC. Then investors can invest in individual series that hold individual properties. You really need an experienced securities attorney to help you with this, but in the long run, will save you a lot of time and cost.

Yeah, one of our students did on Mainvest. I highly recommend you reach out to him. I don't know if he is here on BP but if you join our FB group (linked below) - I will introduce you to him in a tag. 

FYI - I am NOT a fan of crowdfunding for real estate under Reg CF. Not as an investor, but as a sponsor. The investors simply don't invest enough money. Average CF investor only invests $250. It's kind of a drag.

Hey - I used to practice securities law. 

Bottom line is this: the very first word in the statutory definition of securities is "note" - you are selling a security. You can't get out of it. 

My recommendation? Get a lawyer to write you a killer note template and then file form Ds. Your note template should include the note itself, proper disclosures and disclaimers, and risk factors. Also, if you secure it with a deed of trust or mortgage, some states have what is called a "self-executing exemption." 

If you are looking for a good lawyer, I recommend Crowdfunding Lawyers (my old firm).  Let them know I sent you. Best of luck out there!

Ben, I think getting a mentor is a great idea considering I a. Invest in mentors myself b. Have my own mentoring program for raising money and apartments, so it would be stupid of me to say otherwise. 

However, there might be some value in just passively investing in someone else's deal with a friendly sponsor and then asking to "tag along" for the experience. Michael Blank is a super nice guy, so I wouldn't want to take anything away from him, but tagging along might be a temporary and easy solution. 

Our mentoring program is by invitation only and our request for invitation is not open currently.  I do however have a bunch of free stuff and a private Fb community.  If you are interested in that, you can private message me. 

Hi, yes, if you message me, I will send it to you. I am seriously not looking for anyone to buy anything right now as we only take 80 people per year in our mentoring program and you have to request an invitation.