Browsing for Dollars - Crowdfunding for CRE
[{"id": "cnq7ofj", "text": "Anyone really done that?  I have a feeling that would have our lawyers both shitting a brick and counting billable hours at the same time.  Sounds like securitization/private funds/reit's etc without any over sight or licenses.  Not that wall street is the most ethical place or anything but this just seems designed for fraud and gurus to line up smaller dollar deals then drain all the value away in fees while they promise huge returns on shaky or even illegal structures.", "replies": [{"id": "cnqujmi", "text": "I have a couple friends who've been investing in various real estate related crowdfunding campaigns and have been pleased with the result thus far.  Nonetheless online RE crowdfunding has only been around for a few years and primarily focused on accredited investors (Title II of Jobs Act).  Since 2013, the investor pool was broadened to include non-accredited investors but only in select states who were looking to implement faster, than the Feds that is, Title III of the Jobs Act.\n\nThe first 2 states to change investment rules, i.e. you want funding for a project you could now solicit funds from both accredited and non-accredited investors (for non-accredited they have to be residents of the state) - although there are still limits on funding amounts etc, were Kansas and Georgia.  Georgia, out of the 10+ or so states that have made similar changes, is by far the most expansive and business friendly.  I actually spoke with a few of the progenitors of the legislation and who have active businesses that have been crowdfunded.  Despite many obstacles (largest of which is public understanding/adoption of the business model) continues to help chart the course for the industry.\n\nI tend to look at it like this, since the industry is so nascent the people involved in it, as a collective group, have been really good at exposing would be scammers.  Nonetheless, as the industry gets bigger and bigger I'd assume more scammers will come out of the woodwork.  Now I don't think there will be more scammers in the crowdfunding group than say, already exist on Wall &amp; K Street but Murphy's Law of Inevitability will rear its head.\n\nAs always the caveat emptor, research and vet the crowdfunding platform, i.e. who is hosting the campaign - there currently exists and will be more locally based crowdfund platforms, as well as the projects/businesses themselves.    ", "replies": [], "depth": 2}], "depth": 1}]