Our Crowdfunding Network Is Growing Part 27

Friday was a busy day. We had a second call with Groundbreaker to discuss starting our own portal. We discussed a few different options, one of which would overlap with my activities for Bullseye Capital and Joel Block's National Association of Syndicators. The other option is just providing the guts for Inner 10 Capital.

We also spoke with Scott Purcell from FundAmerica, who will be offering similar services to many of the other white label companies soon. The difference is that Scott's platform is built more from a compliance standpoint and is broker-dealer-centric. We're investigating some claims about 506(c) not superseding some state securities laws from the SALE (not offering) of securities. This was one of Scott's claims and we're digging into it with a variety of securities attorneys. I should get some feedback on this next week, but it seems rather ludicrous to me so I have a hard time believing it is completely accurate. There is probably a kernel of truth to it, but this claim would completely invalidate 506(c) from a practical level. One may as well go through the brain damage of doing a Regulation A placement if this is the case, which is why I doubt it is wholly accurate. We'll know more next week.

We have made more progress on our new Inner 10 Captial website this week and we are continuing to pull 3-4 investors a week on our own site. Organic traffic from Fundrise has been tepid of late and I am really starting to question their utility given all of the baggage that comes with listing something on their site. For promoters looking to rent space on someone else's site it may make sense, but we have several other options and the expertise to execute so I am not sure it will be the best option for us.

iFunding is still planning to list our 2nd deal on South Center soon. We have some restrictive covenant work about to be cleaned up, which has gated progress on the project. I am hoping we can buy the whole platted street of 5 lots after these changes are made, but I am not sure if the other owners will be rational with their pricing. If we can capture some more projects I'll probably crowdfund all of them individually.

At every turn there are landmines with the new securities legislation and everything is so new it is hard to know who to trust. Many of the insiders seem to have their own agenda and some are trying to scare people into using their products and services. Fortunately we have the resources to pierce this nonsense quickly, but there is a new batch of nonsense at most turns so we're going to just have to slug it out and wade through it. I am still hoping to have all of our own sites, processes, and new funds set up this year to have options about whether or not to use someone else's portal or my own. What form our portal will take and the business model are up in the air, but I am still leaning toward just listing our own deals and not those of other investors. That is a full time job by itself that will distract us from where we add the most value.