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A Brief Overview of Exemptions for Real Estate Fundraising
Raising capital for a real estate project can be a complex process, and there are several options available to companies seeking to do so. Three commonly used exemptions for real estate capital raises are the 506b exemption, the 506c exemption, and the Regulation Crowdfunding (Reg CF) exemption. The 506b exemption, [more]
Maximizing Your Real Estate Syndication: Choosing the Right Securities Exemption
As a real estate sponsor with a real estate syndication, it is essential that you have an SEC attorney with whom you consult regularly. It is crucial, however, to remember that your attorney is there to provide you with guidance and advice, but the final decision on which securities exemption [more]
Real Estate REIT Redemptions
Is liquidity a good thing for real estate? One of the benefits (as well as the drawbacks) of buying real estate is that it is not liquid. Blackstone Real Estate Income Trust created a semi-liquid private REIT (Real Estate Investment Trust), and now that there is potential volatility in ther [more]
First-Ever Black Cultural Enriched Resort Crowdfunds Grassroots Funding on Invown
A real estate developer from Texas is building the first-ever residential community and resort for the Black community where Black culture, financial success, and freedom are shared and celebrated. Partnering with Invown, a new crowdfunding platform for real estate investments, Alyssa Phillips' Oasis Noir is raising funds needed to build [more]
A Limited Partnership Investment in Real Estate is Purchasing Securities in the Deal
A limited partnership (LP) investment in real estate is, from a legal perspective, buying a security. This is because an LP investment in real estate involves the purchase of an ownership interest in a real estate venture, which is considered a security under the federal securities laws. The federal securities [more]
What is the Legal Definition of a Security?
The legal definition of a security is a financial instrument that represents ownership or a financial obligation. Securities are used to raise capital and facilitate the buying and selling of assets, and they are regulated by government agencies to protect investors. The U.S. Securities and Exchange Commission (SEC) defines a [more]
Why Reg Crowdfunding Makes Sense for Real Estate as Interest Rate Increase
The Federal Reserve raised rates again last week. Fed Chair Jerome Powel has made it clear that he is willing to do whatever it takes to get inflation under control. Could interest rates rise into the teens? Absolutely. What does this mean for financing real estate deals? Of course, it [more]
Two Reasons Your Real Estate Fund is NOT an Investment Company and CAN Use Reg CF to Raise from an Unlimited Number of Investors
In this article you will learn two reasons why your real estate fund might not be an Investment Company and can therefore raise capital from an unlimited number of retail (even non-accredited) investors using Regulation Crowdfunding (Reg CF). One of our clients is a real estate private equity fund [more]
What is the Cap Rate and How do You Take Advantage of It?
What is the Cap Rate? Many beginners do not know what Cap Rate means. The Cap Rate is just a number indicating the profitability of a property compared to other properties in the vicinity. Here is how you calculate a Cap Rate: Take the total Net Operating Income (NOI), divide [more]
You Need Money to Make Money, But It Does Not Have to Be Your Money
If you want to invest in fractional ownership of real estate on platforms such as Invown, you can do so with as little as $500. But most people think that if you want to buy an entire property, you need a lot of your own capital. While one certainly needs [more]
