Crowdfunding and it’s benefit for funding real estate 2 a

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Crowdfunding and it’s benefit for funding real estate projects

WARNING: This communication is not an offer to sell any securities or insurance or licensed product and is meant as informative purposes

only. Explanation given here today are not

exhaustive but only given to shed light on key distinctions in the JOBS Act and its application.

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D.A. (Eddie) Edwards Full Bio Introduction: Who is D.A. (Eddie) Edwards?

Trained Accountant graduated from College of Arts Science and Technology Jamaica W. I., Further Studies

at Pace University in Accounting/Real Estate, Real Estate Broker since 1989 Licensed in New York,

Georgia, and Jamaica W.I. License Real Estate Educator through the NYS Education Standards Board to teach

real estate Brokers and Sales Person courses.

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Mr. Edwards is a Former Mortgage Broker and an inactive member of the National Mortgage Loan

Registration System, (NMLS), MLO#50701. Former Secretary and Executive Board member of The New York Association of Mortgage Brokers, Certified to teach and train Mortgage Loan Originators at all

levels of the Mortgage Origination Courses both at the National and State Level, currently teaching

with, Ameritrain Mortgage Institute.

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He is a Public Speaker, and member of the National Speakers Association, (NSA) and Georgia

Speakers Association. Speaking on Real Estate issues, in particularly Emotional Intelligence and

its impact on the real estate Professionals and Crowdfunding for real estate. He works with Real Estate Professionals that want to get funding for real estate projects so that they can close more deals through their understanding of their own Emotional Intelligence and the crowdfunding

space.

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He works with Real Estate Professionals that want to get funding for real estate projects so that they can close more deals through their understanding

of their own Emotional Intelligence and the crowdfunding space.

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He is a Member of the Georgia Chapter of the National Association of Real Estate Brokers,

(The Empire Board of Realtist) and Chairs the Technical Committee.

He is a Competent Communicator with Toastmaster international.

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He has authored two books, 1. Crowdfunding Simplified for the real estate

investor and Developer. 2. Emotional Intelligence what a real estate

investor should know.

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He’s an avid cyclist having completed numerous century rides. He is currently training to become an Ironman in May 2017. An Ironman contest is

participating in three Sporting events on the same day; 2.1 miles swim in open water, a 112

miles bike ride and a run of 26.2 Miles.

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You can contact him for appointment athttps://eddieedwards.acuityscheduling.com/

For Speaking Engagement Email me at [email protected]

For Real Estate InvestingEmail me at [email protected]

https://www.linkedin.com/in/eddieedwards01

https://twitter.com/Eddie_Edwards

https://eddieedwards.acuityscheduling.com/

mailto:[email protected]




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A brief history and implementation of crowdfunding through the JOBS Act

April 5 2012 President Obama signed the, Jump Start Our Small Business Act, The JOBS Act into

Law

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It lift a eighty Years ban on General Solicitation for open investment from the

general public. Now sponsors can go to the general public for investment capital via the

internet and social media

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There are five Titles to the JOBS Act.Title I - Initial Public Offering and Emerging

Growth CompaniesTitle II – General Solicitation and Accredited

investorsTitle III – Non accredited investors and crowd

investing

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Title IV – Regulation A + or Reg A+

Title V – Private Companies –can stay private longer

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Title IIs the ramp for Emerging Companies. This first

part of the act covers companies that wants to go public through an IPO. An EMGC is a company

with less that $1 Billion in revenues over the past financial year.

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EMGC are exempt or at least partially exempt, for a period of time from certain disclosures that

deter companies from going public.

They are allowed to file a confidential IPO registration statement with the SEC that must be

made public at least 21 days before actively promoting the sale of its offering, (testing the

waters).

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Title IICovers General Solicitation, Accredited Investors

and Regulation D Rule 506 offerings that are exempted from SEC registration provided that the offering is not publicly advertized and that

purchasers are qualified institutions or accredited investors (Open to accredited investors only).

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An accredited investor is persons with a net worth is greater than $ 1 Million dollars excluding their primary residence or those individuals income

exceeds $200,000 ($300,000 for couples) for the past two years with the expectation that that

level of income will continue into current year.

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Title II lift the ban on mass marketing of offers as long as the issuer(s) reasonable believes and has

taken reasonable steps to verify that Potential buyers are accredited investors

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Title III of the JOBS Act takes the main theme of the Act and most think that this is the only title of the Act. It is Title III that legalize crowd investing

and none accredited investors.

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Under Title III a company can raise up to $1 Million within a 12 month period from the

General Public through a Broker Dealer or Funding Portal Website

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Investors are subject to annual investment caps based upon their income or wealth and investor

education and limits on General adverting.

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Title IV of the JOBS Act: or Regulation A+ This Act permit the sale of securities to both accredited and unaccredited investors so long as the issuer

files a mini-registration with the SEC and complies with relevant state law requirements in each

state where funds are solicited.

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Title IV increase the offering limit from $5 million to $50 million in a twelve month period and requires that certain filings be provided to investors and provides for annual audited

financial statements.

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Title V of the JOBS Act: Private Companies Stay Private Longer. This is the last of the Title of the

JOBS Act. It increases the threshold on the number of Shareholders a company can have

before it is subject to Exchange Act annual reporting requirements.

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Prior to Title V of the JOBS Act a private company could only remain private until it reaches 500 share

holders. Title V now change this limit to 2000 Shareholders or 500 Shareholders who are

unaccredited. When combine with Title II of the JOBS Act it allow many private companies to be

able to raise more private money and remain private longer.

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The four tiers/base of Crowdfunding 1. Donation Base2. Rewards Base

3. Debt Base4. Equity Base

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The Four tiers of Crowdfunding.a) Donation Base

Here your donations are given like a offering in church. You give without the expectation of a return.

b) Rewards Base

Rewards based are based upon a token gift being given to contributors. Example a author going to the crowd to get funding for a book. They may offer a copy of the book upon completion.

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c) Debt Equity BaseDebt Equity based Debt crowdfunding: In this

method of crowdfunding investing, investors are lending money under the understanding that they

will receive a return on their investment for a specific term, at a certain interest rate.

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d) Equity BaseIn this method of crowdfunding, investors are

expecting to receive an ownership interest in the investment, by shares, dividends and or profit

sharing. Equity crowdfunding really came to life with the passage of title II of the JOBS Act in

September 2014.

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Are you ready for crowdfunding and real estate?

Do you have deals for the Platforms?

What you need to know.

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Investing in the crowdfunding spaceTo understand how to invest in this space one

must first understand who the true players in the space are:

1) The Investor2) The Developer

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The investor invest in the space for a ROI.The developer use the space to source funding for

deals.

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There are over 140 Different Real Estate crowdfunding Platforms to choose from.

There are Comparison Matrix that rank platforms from the highest to the lowest based upon

longevity and Capital base.

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Deals can be funded from $50,000 to the greater of $150 Million dollars and above.

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The DeveloperThe developer brings deals for funding to the platforms and borrow funds for these deals.

Looking for a fast loan the platforms can expedite your deals as long as they meet their criteria.

Platforms are looking for Developers that have a track record of success in the strategy they are

pursuing

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Platforms are looking for Developers that have a track record of success in the strategy they are

pursuing.Platforms are enrolling developers and are

hungry for your loans.Loans can be closed in as little as 5 – 10 days from

application.

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How Real Estate Crowdfunding Platforms works.

Looking at three Platforms. 1) Realty Mogul 2) Patch of Land

3) Groundfloor (the most active platform in Georgia).

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1)Realty Mogul

2)Patch of Land

3) Groundfloor (the most active platform in Georgia)

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Realty MogulRealty Mogul was launched

in 2013 by Jilliene Helman and Justin Hughes as an alternative to traditional real estate funding by

developing an online real estate crowdfunding site to finance real estate.

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It has more than 20,000 investors, borrowers and sponsors and has financed more than 300 properties, with loans totaling more than $700

million.

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It has more than 20,000 investors, borrowers and sponsors. It has financed more than 300

properties, with loans totaling more than $700 million Dollars.

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The platform arranges residential debt products, as well as both equity and debt

products for commercial real estate.

It is managed by a team of professionals who are experienced in real estate, finance and

technology; key ingredients to operate a fully functioning real estate portal.

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They will invest in, multi-family dwellings, office buildings, industrial sites, self storage, retail,

medical buildings and hospitality establishments.

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They enable investors to participate in single-family properties that are bought for the purpose of being rehabilitated and flipped. Just about any

property can be invested in, as long as it is not used as a primary home or as a secondary

residence.

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Patch of Land Patch of Land originates, underwrites and services loans, offering these to accredited

investors through the JOBS Act.

They only serves accredited, institutional and international investors.

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Groundfloor

This platform started in Georgia and have extended into Illinois, Pennsylvania, Arizona

Massachusetts and Virginia.

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Groundfloor place first mortgage lien on single family properties and afford investors shares in a

LLc. Investors indirectly benefit from the lien because they are secured in a company

(GROUNDFLOOR Properties) that has a lien on real assets.

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Steps to take to get funding from a platform for a real estate project

Have a deal Blue printProve your experience in the strategy

Be ready to stand guaranteeFind a Platform that best fit your project

Get funded

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Summary and ConclusionOur call to action

Black houseownership matters, Black Equity matters just as much as black lives matters.

Equity transferred from our community is still there for us to have them transferred back. The JOBS Act is here for us to use so LET US

USE IT!

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Schedule an appointment to discusshttps://eddieedwards.acuityscheduling.com/

For Speaking Engagement: Email me at [email protected]

Follow me:https://www.linkedin.com/in/eddieedwards01


https://eddieedwards.acuityscheduling.com/



