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| Topics >> by >> Legal Structures of Real Estate Crowdfunding | Explained! |
| Legal Structures of Real Estate Crowdfunding | Explained! Photos Topic maintained by (see all topics) |
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Thanks to sites like Kickstarter and Fundraisingscript, real estate collection has been around for a while. But real estate crowdfunding is radically different. On sites like Kickstarter, you’re basically donating to the person or company offering the offer. With the help of websites like Fundraisingscript you can use crowdfunding software for real estate deals. Despite the promise of a reward, there is nothing definite that compels the issuer to comply with the person who contributed. You have no legitimate interest in the company or project being advertised. Real Estate CrowdfundingIn real estate crowdfunding, you have a stake in the project, which can be in the form of debt or capital or something else, depending on the structure of the deal. This is now the same as fundraising for investment purposes and is governed by all the rules of the local securities regulator on investment proposals. The difference is the delivery mechanism and user experience, ease of use. But the basic legal structures must be subject to the laws of the country. Let’s take a look at the existing structures. An Undisclosed Private OfferIt is the simplest and is usually used for joint ventures and private deals. According to the 20 12 rule, you can get 2 million from 20 retail investors. A retail investor simply means anyone who is not a wholesale investor. And a wholesale investor is someone who has earned at least $ 250,000 or $ 2.5 million in assets in the last two years. It has a general definition and more, but the simple idea is that this is a very rich man. ResponsibilityThe government rightly believes that those who have done good for themselves and are aware of the complexities should enter into agreements without hindrance. Then they can decide for themselves whether it makes sense or not. If the contract gets worse, it is your responsibility not to study it enough. Government Protect Retail InvestorsThe government wants to protect retail investors from the effects of customer service offers. Therefore, the issuer is paid only 2 mln. And only 20 small investors can participate in this offer, so it will not turn into a free offer for everyone. Significant RestrictionsThere are major limitations in the implementation of a clear proposal that can be made explicitly under these rules. It cannot be seen that he is openly demanding an investment and does not give full details of it. |
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