PeerRealty-CFXThe Premier Crowdfunding

Solution.

prepared for

The World Crowdfunding Conference

Understanding the US Crowdfunding Market

By:

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Transformational Rules

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• Crowdfunding is the practice of raising money through contributions from many individuals, instead of just a few

• Crowdfunding allows individuals to invest in a project in exchange for equity — a fundraising technique legalized in the USA by the passing of the Jumpstart Our Business Startups (JOBS) Act in 2012

• In amendment of the Securities and Exchange Acts, the JOBS Act allows for citizens around the country—and around the world—to invest in businesses and products over the internet, as long as the goods and services are offered in accordance with regulations set by the SEC

• Regulation D– 506(b) Most common, no public solicitation– 506(c) Public solicitation

• Title III– “Crowdfunding”

• Regulation A+– Mini-IPO

• Regulation S– International Investors

Type of Fundraising in the US

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Market DisruptionCrowd Finance

Crowdfunding portals could raise $34.4 billion1 in 2015 – over 12x the amount raised in 2012

• Donations / Rewards-based• Consumer Lending / P2P

Up to $2.5 billion in real estate transactions will occur worldwide in 2015 based on industry trends from the past three years.

1. Source: Massolution Crowdfunding Industry Overview 2015 Research Report

• Venture Capital• Real Estate

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CrowdfundingOver Time

Current Real Estate Crowdfunding Market

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Crowdfunded US Real Estate 2.5 billion dollars

US Commercial Real Estate Market7 trillion dollars

• Presently, 3.7 million investors have at least $100,000 in securities and over 8 million people are qualified to invest under Title II; when the details of Title III are finalized, roughly 230 million new individuals will be eligible to invest.

• Regulation S allows foreign investors to take part in US private securities transactions

• According to Forbes, the entrance of just 25,000 new investors to the market will result in a $300 million dollar bump in invested funds.

• It is further expected that amendments made to Title III of the JOBS Act will transform the U.S real estate investing industry into a $300 billion market.

Market Opportunity

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Investor Market

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230,000,000

potential investors

8.3 milinactive

accreditedinvestors

200kactive accredited

investors

Diversification

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7-15%of portfolio

ideally invested in alternative assets

Vanguard recently reported the average 401k balance at year end 2013 reached a record high of $101,650.

8% = $8,132At Fidelity, the average 401(k) balance was $91,300 by the end of 2014.

8% = $7,304Accredited investors must have $1,000,000 in assets outside the value of the home

8% = $80,000

How Do You Diversify Into Alternative Assets

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Sponsor Benefits

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Grant accessto new capital sources

Guaranteed publicityallowing sponsors to grow their business

Smaller and less involved investors means less time

wasted on investor relations

Moremanagerial control

Lowercost of capital

Web and Mobile

Responsive, dynamic designMobile ready, adjusts to device size

Flexible design customized to your brandEasy to manage content – pages and blogs

Social sharing and social login methods

Portals either earn a flat fee or roughly 2% on all amounts raised.• This is generally rolled into closing costs

Some portals will earn a 1%-2% asset management fee on invested dollars while others will not take any role in investor management

• This is generally charged to the investor directly

Finally, portals who take an active role will then share a small portion of the promote

• Those portals provide value through our compliance, investor relations and legal services, specifically by freeing the sponsor from any liability and the burden of raising money

• The economics should not change much due to the cheaper cost of capital demanded by the crowdfunded investor base

Fee Structure in the Market

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This is a Confidential Memorandum intended solely for your own limited use to determine whether you wish to express interest in participating in the investment of Peer Realty, LLC. This Confidential Memorandum contains certain information pertaining to the business and has been prepared by Peer Realty, LLC. This memorandum does not purport to be all-inclusive or to contain all the information that a prospective investor may desire. Neither Peer Realty, LLC, nor any of its officers, directors, employees or agents, makes any representation, express or implied, as to the accuracy or completeness of this Confidential Memorandum or any of its contents. By your receipt of this Confidential Memorandum, you agree that this memorandum and the information contained herein, is of a confidential nature and that you will not disclose this memorandum or any part of the contents to any other person, firm, or entity without prior written authorization of Peer Realty, LLC. Further, you will not discuss this matter with any other party without first contacting Peer Realty, LLC. If you do not wish to pursue this matter, please return this Confidential Memorandum to Peer Realty, LLC at your earliest convenience.

All communications, inquiries, and request for information relating to these materials should be addressed to Jordan Fishfeld of Peer Realty, LLC at (561) 414-8216 or via email at Jordan.Fishfeld@PeerRealty.com.PeerRealt

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Disclaimer

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