Our Crowdfunding Network Is Growing Part 16

We received the engagement letter from the securities attorney we have selected yesterday and are reviewing it. Our approach will be to do a test-the-waters campaign and see what investors come out of it. We're then likely to do a 506(c) for single purpose raises and possibly a Regulation A+ raise later on when the rules are clearer to organize non-accredited investors. Title IV may be a way out though so this will play out over the course of a few years most likely.

Our Fundrise network is now up to 105 investors and $7.54M in a smidge over 2 months. We are pulling about 10 new investors a week without advertising much. That number should hopefully double once we get our marketing strategy down and PR engine working.

We're set to meet with the Fundrise attorney and staff again next Wednesday to hopefully get movement on getting a campaign going on the site. We also have a conversation going with GroundBreaker about a white-label portal through their site and have started speaking with ForeFund Capital about investor campaigns. In addition to the for-sale investor leads we'll be doing inbound marketing through BP, LinkedIn, Google+, project tracking, webinar series on crowdfunding, Google Hangouts, etc. It will be interesting to see what produces and what doesn't. What we measure and how we screen will be a key part of the overall marketing process and we have folks helping us with this.

My hope for March still is to have a 2nd crowdfunding campaign going and to have 1122 Linden fully subscribed. The 1122 deal currently has 51.3% subscribed in 9 days and has lost a bit of momentum. We'll see how that goes I guess. Part of the challenge will be keeping our existing investors happy with enough deal flow and exploring the new crowdfunding route as well. We have JV investors looking for deals that can fund the whole transaction so in the short run we may just keep funding some deals in that fashion since it is easier. If the funding duration decreases on the crowdfunding sites or if we can somehow lower our cost of capital this may change.

Overall we've made a lot of progress in the last 2 months. In the next 2 I expect to have a new website and marketing system, a second crowdfunded deal in process, and multiple platforms we're working with. We should have a number of campaigns too and be measuring the success of each campaign to figure out how to focus our resources.