Crowdfunding 101 for real estate investor, sales person and other real estate professionals

1. 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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2. 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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3. 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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4. 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
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5. 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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6. 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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7. 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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8. 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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9. You can contact him for appointment at
https://eddieedwards.acuityscheduling.com/
For Speaking Engagement
Email me at eddie@eddieedwardsspeaks.com
For Real Estate Investing
Email me at eddie@eddieedwardsrealestate.com
https://www.linkedin.com/in/eddieedwards01
https://twitter.com/Eddie_Edwards
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10. 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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11. 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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12. There are five Titles to the JOBS Act.
Title I - Initial Public Offering and Emerging
Growth Companies
Title II – General Solicitation and Accredited
investors
Title III – Non accredited investors and crowd
investing
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13. Title IV – Regulation A + or Reg A+
Title V – Private Companies –can stay private
longer
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14. Title I
Is 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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15. 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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16. Title II
Covers 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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17. 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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18. 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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19. 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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20. 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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21. 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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22. 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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23. 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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24. 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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25. 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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26. The four tiers/base of Crowdfunding
1. Donation Base
2. Rewards Base
3. Debt Base
4. Equity Base
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27. 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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28. c) Debt Equity Base
Debt 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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29. d) Equity Base
In 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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30. Are you ready for crowdfunding and real estate?
Do you have deals for the Platforms?
What you need to know.
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31. Investing in the crowdfunding space
To understand how to invest in this space one
must first understand who the true players in the
space are:
1) The Investor
2) The Developer
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32. The investor invest in the space for a ROI.
The developer use the space to source funding for
deals.
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33. 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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34. Deals can be funded from $50,000 to the greater
of $150 Million dollars and above.
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35. The Developer
The 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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36. 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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37. 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)

39. Realty Mogul
Realty 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 print
Prove your experience in the strategy
Be ready to stand guarantee
Find a Platform that best fit your project
Get funded

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Summary and Conclusion
Our 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 discuss
https://eddieedwards.acuityscheduling.com/
For Speaking Engagement:
Email me at eddie@eddieedwardsspeaks.com
Follow me:
https://www.linkedin.com/in/eddieedwards01
https://twitter.com/Eddie_Edwards