Our Crowdfunding Network Is Growing Part 2

Investors continue to pour into our Fundrise site. We haven't done any more marketing and we're now up to 53 investors with $3.81M to invest in about 10 calendar days. I am in active discussions with Fundrise about how investments need to be structured to get placed on their site. Money can be organized in a variety of ways and I am awaiting feedback on some questions raised. Since we passed 50 investors we can now raise money through the site.

We have calls with iFunding and Realty Mogul today as well. iFunding seemed quite flexible and wanted to make 5% on the equity they raised. We're working though some deal structure items with them and they're vetting some of our previous investments.

I know Realty Mogul doesn't fund development projects so I talked to their CEO about structuring a debt fund instead with some more knowledgeable principals in this space. They seem to be quite conservative and cash flow focused, which I like because it means they're in it for the long haul. We're considering a separate class or shares or cell for debt in our new blind pool that we set up. If this materializes we will likely raise equity for a debt fund on Realty Mogul.

The next companies on the list are:

-Realty Shares

-RealCrowd

-CrowdStreet

-PropertyPeers

-Crowd Mason

I'll study their sites to see which looks like the best fit.

I have also been looking into "comfort letters" that CPAs will be asked to write for accredited investors under the new JOBS Act public solicitation rules. Apparently a company called Camico underwrites many insurance policies for CPAs in the country and they dislike these comfort letters. I'm not sure what their specific posture is toward letters for accreditation, but I can only imagine they want the CPAs to stay far away from them. Lawyers and other licensed professionals probably have similar problems writing these letters.

That leaves companies like Accredify or others like it to fill the gaps. I have to think that online security is a major issue for these companies and that many accredited investors are unwilling to share this information with them given the recent problems notable companies like Target have had. I'll keep digging to see how many clients these companies actually have and post again if I get any information on it. It seems the SEC is trying to keep fundraising functionally illegal now instead of it being actually illegal with how things are going down.