Starting a notes crowdfunding business

[Ronke Adetoba]

I have been an active notes investor for about 15 years but only using it to build my portfolio.  I have over time pooled resources with family to make larger acquisitions.  I am now looking to expand to outside investors through a crowdfunding approach but cannot seem to find any information or education.  I need help with:

- Legal ramifications for collecting other peoples money ( I have the SEC rules but is there anything else)

- Purchasing entities (Do you have to form new entities for every deal/ property?)

- Taxes and distributions (Can all deals be purchased under 1 name and distributions/ taxes be divided to different investors)

Thank you

[Andy Mirza]

@Ronke Adetoba

In addition to SEC regulations, you have to abide by federal & state laws. There's nothing that says you can't do it by yourself but as Dan pointed out, you'd be well advised to find an experienced attorney to guide you through the process. There are lots of attorneys out there who specialize in this field. Be aware that there's a wide range in what they charge so do your research to balance price vs quality to find the right fit.

Our Funds are formed under a Reg D, 506 (c) exemption. Each Fund is its own LLC, which purchases its own portfolio of notes in its own name.

Investors get a K1 for tax purposes.