All Forum Posts by: Jillian Sidoti

@Linda S. - real crowdfunding is not gofundme campaigns - its companies, entrepreneurs and startups raising money for their deals. It is what is regulated by the SEC.

I would not recommend using your credit cards or taking money out of your house.

Hi -

Hopefully I can help with this. With a syndication, you can carve out a TIC interest using a Tenant Inc Common Agreement. There would be two separate investors - an LLC (where all your investors who do not have a 1031 are) and then the 1031 investors as individuals (or however they owned their previous property.) All of these investors (the LLC plus the 1031 investors) would be on the title of the property in a tenant in common ownership. However, one cannot invest directly into the LLC with a 1031 - hence a TIC carve out. You can also have a DST. All still have to follow securities laws.

About DSTs: Your property may not be appropriate. I suggest googling "7 deadly sins of DSTs" This will be helpful.

As for Rule 506(b) offerings: you can take up to 35 sophisticated investors. Those investors must be sufficiently sophisticated to understand the risks associated with investing. I hope this helps.

I have the same question as Larry -

But I will answer both questions: "Yes."

:)

Let me know what you are looking to do and I will try to be more detailed!

Sure - go ahead. I probably won't respond until tomorrow.

Also, for what kind of deals are you looking to raise money? How much?

Hi Alexander, I am happy to answer your questions. Are you looking to generally solicit (i.e. explicitly say "I am looking for investors and offering x% return on investment" or are you looking to do some content based marketing where there is no direct ask for investor money?

Ian misspoke. Those are all for unaccredited investors. They all have Regulation A offerings. 

I invest in a lot of crowdfunding deals and I represent some crowdfunding portals/platforms. I also represent many deals that are presented on platforms. I want to say this upfront so it is understood that I am not promoting anyone who has paid me money.

If I was going to invest in MF passively, I would start with Crowdstreet - Darren Powderly (the many in charge over there) is a CCIM that understands the space. I have invested in some deals on CS. I have also invested on Fundrise, Realty Mogul, WeFunder, Groundfloor, and others. To me, you are going to find the most solid, single syndication deals on CS. I have very much enjoyed investing with Fundrise as well, but CS is more inline with what you are looking to do. Good luck!

@Donovan Keim - Amy is the person who can help you on this. Yes, there are some stipulations and you also want to start off in the right direction. It's always about PROPER DISCLOSURE. Did you tell the investor exactly what was going to happen? How you were going to use their money? What the risks were associated with the investment opportunity?

Best of luck!

Hi @Steven Kleppin - as many previous posters said, you need to always comply with securities laws when dealing with investors. So you are obligation is something I call the "three D's":

1. DISCLOSE - all the material facts. What do your investors need to know to be fully informed.

2. DISCLAIM - any liabilities. What are the risks associated with investing? What rules are you operating under.

3. DETAILS - tell your investors what you are up and what their expectations can be going forward.

Another poster mentioned "substantive pre-existing relationship" - this is true. But what does this mean? There is a lot of misinformation about this phrase and test.

A substantive pre-existing is one where you are "intimately aware of one's financial ability to invest." This is normally done through a investor qualification form. Honestly, if you google search "investor qualification form" you should be able to find one. Provide it to all of your potential investors. It will help you a lot in the event of a problem. Best of luck!