All Forum Posts by: Jillian Sidoti

HI @Account Closed - Todd is right. The best way to go is talk about PAST deals. But also be careful with that and make sure what you are saying about the past deals is truthful (for example, don't post a deal you have a partial interest in as if you are THE owner.) 

I would spend an hour with a securities attorney to go over your website with you once it is up and running. A good attorney won't tell you HOW to put your website together but will help you construct what you have already created into a proper "legal" format. Hope this helps. 

@Christopher Goldie - I think I might have the perfect guy(s) for you. Please feel free to reach out to me and I will introduce you. 

Yes, some of them do. It's not really about the platform - it's about the particular offering. So take the tax section of any offering and have your CPA review. At the end of the day, you invest in these for the passive nature of the investment opportunity more than anything else. (At least, that's my perspective.)

@Ian Ippolito - is the real expert on this, but here is my $.02. 

I have invested in the following: 

1. Realty Mogul

2. Fundrise

3. Crowdstreet deals

4. Groundfloor

I am about to invest in another platform. I am happiest with the way Fundrise works - the platform is just the nicest (in my opinion.) I have been pleasantly surprised with Realty Mogul and their consistency as well as their technology. I think Crowdstreet has some of the better deals. 

Outside of real estate, I have invested on WeFunder and StartEngine.

Things on your website:

1. Who you are 

2. What you do

3. Educational Materials

What should NOT be on your website: 

1. Over offers or requests for money

2. Words like "guarantee, low risk, safe, secure"

3. Offers of certain returns.

@Account Closed

Under RUle 506(b), you must have a substantive pre-existing relationship. A "substantive pre-existing relationship" in the eyes of the law is an "intimate knowledge of one's financial ability to invest." This is accomplished with, generally speaking, an investor qualification form. I hope this helps.

I just recorded a webinar for Note Camp this weekend on this very subject. If you search for Scott Carson or Note Camp and get that webinar, I think that might help. I would link to it, but I don't have the link. If I can get a transcript to it, I will forward to you. I tell some good stories on how clients of mine raised money successfully and found "money partners." Good luck!

I would speak to @Amy Wan - I don't know why I can't tag her here. She has a product that assists with syndications of smaller deals. Best of luck!

@Taylor Witt - I will send you one. 

Hello everyone,

I have done a lot of Rule 504s in my time. I do NOT recommend them at all. The state securities boards are NOT friendly to them at all. Here are some reasons why:

1. Some states (like Michigan and NH) do not even allow Rule 504's in their states.

2. Rule 504 offerings (and Rule 505) are not federally covered securities. This means the states that do allow 504 offerings may require you to send all of your offering documents to the state for review prior to allowing you to sell in their state.

3. Some states (like Arkansas) will require you to provide a list of investors to the state.

4. Although it is true that the SEC expanded Rule 504 (or is in the process of doing so) this does not change the way the states will treat Rule 504. It is also true that the change to Rule 504 will eradicate Rule 505. 

My recommendation is to stick with Rule 506 offerings, under either (b) or (c).

506(b)

1. You need to have a "substantive pre-existing relationship" with a potential investor prior to making an offer to invest. This means having an "intimate awareness of one's financial ability to invest." This can be accomplished with an investor qualification form.

2. No general solicitation allowed.

3. Up to 35 sophisticated (unaccredited) investors and unlimited accredited investors.

4. Raise as much money as you  want.

506(c)

1. No pre-existing relationship required.

2. General solicitation allowed.

3. Only accredited investors.

4. Raise as much money as you want.

I hope this helps.

@Todd Dexheimer if you want me to check on any states for you, I am happy to do that.