Apr
07

Regulations Propel RECF Platforms Towards IPOs

After Lending Club’s IPO, it’s no wonder that RECF Platforms (real estate crowdfunding) are becoming more open to the idea of IPO’s. Lending Club had the largest tech IPO in 2014 valued at $5.4 Billion. In the real estate space, Ifunding has already opened shares in return for equity in their company. Based on his own experience, Ifundings CEO, William Skelly predicts that the number of platforms will decrease to three or five. Even more so, that one or more could do an IPO successfully. Skelly says that the most innovative and successful platforms will be the ones backed by larger financial institutions. Thus, lead to an access of public markets for capital. Key Takeaways of Shifting RECF Platforms As any relatively new industry blooms, consolidation is inevitable. Here are some realities to keep in mind given this transition: Real Estate Crowdfunding usually perceived as democratic, but in reality, Title III and Title […]

Feb
17

Real Estate Compliance and Government Adjusted Regulations

Compliance, or a lack thereof, is in some cases, the root of systemic risk in financial ecosystems. Government and Intrastate Regulators continue to adjust rules. So of course, business owners follow suit and grey areas arise as a result of poor implementation. Since the birth of the Real Estate Crowdfunding industry, compliance and regulations continue to be negotiated. So for today, what is and isn’t compliant? For California alone, we will delve deeper into these topics as an Accredited Investor as well as an Investment Firm. Accreditation Thresholds Definition | The Securities and Exchange Commission identifies an Accredited Investor as someone who receives annual income in the previous, current, and expected year of approximately $200K ($300K with joint spouse). Additionally, someone with a net worth of $1MM, not including their residence is considered an accredited investor. 10% of Net Worth | An investor is eligible to invest in any amount of […]