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The Top Issues with Real Estate Crowdfunding

There remains all sorts of confusion and misunderstanding regarding crowdfunding, particularly as it relates to real estate.

According to David Manshoory, CEO of AssetAvenue, explains that the term, “crowdfunding” is generally being used

“to lump together, a bunch of things together that are not acutally, crowdfunding,”

at least according to federal law and the Securities and Exchange Commission.

As currently defined by the Securities and Exchange Commission, “crowdfunding” actually refers to raising capital from un-accredited investors.

Passed into law In the last quarter of 2013, part of the Jobs Act removed the ban on general solicitation from accredited investors. Now, you can solicit accredited investors over the internet.

An accredited investor, per the SEC is an individual who is making over $200,000 per year, for an individual or $300,000 per year for a couple, for the last two years or if they have a net worth of $1,000,000 or more excluding the equity in their primary residence.

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