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Crowdfunding for Real Estate: Is it legal?

Jilliene Helman, CEO and Founder of Realty Mogul, a pioneer in real estate crowdfunding sat down with me at the CREFC, West Coast High Yield Real Estate Finance Summit in Santa Monica.

Jilliene comments that there is still plenty of confusion over crowdfunding, what is it, how does it work and is it legal.

“…from the 1,000 foot view, crowdfunding is pooling capital together, online.”

At this time, Realty Mogul is limited to accredited investors who are high net worth investors or institutions. “The way the current rules are for non-accredited investors, the rules won’t work. The limitations are just to vast.”

For more detailed information about The Jobs Act and Crowdfunding, click here to listen to Gene Trowbridge discuss

  • JOBS Act
  • Regulation D
  • Rule 506(c), advertising
  • The short history of “Crowdfunding”
  • People “crowdfunding” today w/ accredited investors? No. It’s a vocabulary issue.
  • What can do with 1 million in equity? “Intergalactic CRE Radio!”
  • What’s an accredited investor? 3 types.
  • Crowdfunding from the sponsor/issuer’s perspective
  • Sophisticated investors
  • New rules regarding advertising, labeling, disclosure
  • Foreign investors
  • “Traps” to look out for
  • Securities and relation to crowdfunding
  • Get legal advice!

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