Recent developments in the real estate crowdfunding space have cast a cloud of uncertainty among investors. While regulation crowdfunding has stringent guidelines in place, other offerings like 506c and 506b often operate with more leeway. At Invown, we’re championing a movement that extends these best practices beyond the confines of enforced regulations to cultivate and sustain trust.

Regulation Crowdfunding: A Gold Standard

The SEC and FINRA have sculpted a formidable framework for regulation crowdfunding that sponsors and platforms must adhere to:

• Third-party Oversight: The introduction of an independent funding portal for unbiased validation and accountability.
• Comprehensive Background Checks: Ensuring potential harmful players are kept at bay.
• Escrow Account Protocol: A dedicated account to ensure funds are utilized exclusively for declared intentions.
• Automatic Refund Mechanism: A safeguard in place for investors when there are significant alterations in the offering.

This framework has, in essence, elevated the trust quotient of regulation crowdfunding, ensuring investor interests are front and center.

Venturing Beyond Mandates: 506C & 506B Offerings

While regulation crowdfunding is firmly ensconced within these guidelines, 506c and 506b offerings do not have the same level of enforced regulations. This disparity has often been the root cause of investor apprehension.

However, instead of waiting for regulatory impositions, we at Invonw advocate that sponsors and issuers voluntarily integrate these best practices. By doing so, they not only preempt potential trust breaches but also herald a new era of transparency and investor-centricity.

Empowering Through Funding Portals

One effective method to infuse these practices into 506c and 506b offerings is through reputable funding portals. Portals can act as custodians of these best practices, ensuring that every listed offering aligns with the standards established by regulation crowdfunding. While regulatory bodies mandate this for regulation crowdfunding, the onus for 506 offerings should lie with proactive sponsors and issuers.

The Invown Pledge

At Invown, we’re more than a platform. We’re advocates for unwavering trust in the real estate crowdfunding realm. We beckon sponsors and issuers to join us in this mission, to voluntarily embrace and showcase their commitment to the very principles that have cemented trust in regulation crowdfunding.

Conclusion

The path to unwavering trust in real estate investments lies in universally adopting the best practices of regulation crowdfunding. It’s not just about adhering to mandates but about championing a culture of transparency and accountability. Together, let’s make real estate crowdfunding synonymous with trust.