Real estate is one of the most tried and true asset classes one can invest in existence. Crowdfunding on the internet, in contrast, is a new technology that didn’t exist just a few years ago. Yet, it is already facilitating significant investment activity each year. And with at least 85 real estate crowdfunding platforms already in existence, the activity is poised to keep growing. Should you invest in real estate through one or more crowdfunding platform? If so, which one? And if you do, how do you decide which specific deals to invest in? This Financial Poise webinar walks you through objective answers to these questions in plain English. To view the accompanying webinar, go to: https://www.financialpoise.com/financialpoisewebinars/on_demand_webinars/investing-in-real-estate-through-equity-crowdfunding/

2. Practical and entertaining education for
attorneys, accountants, business owners and
executives, and investors.
2

3. The material in this webinar is for informational purposes only. It
should not be considered legal, financial or other professional
advice. You should consult with an attorney or other appropriate
professional to determine what may be best for your individual
needs. While Financial Poise™ takes reasonable steps to ensure
that information it publishes is accurate, Financial Poise™ makes
no guaranty in this regard.
DISCLAIMER
3

4. MEET THE FACULTY
MODERATOR:
William McGuinn Sugar Felsenthal Grais & Helsinger
PANELISTS:
Joy Schoffler Casoro Capital
Scott Picken Wealth Migrate
Leslee Cohen Hershman Cohen LLC
4

5. ABOUT THIS WEBINAR
Real estate is one of the most traditional investment vehicles in existence. Crowdfunding on the internet, in
contrast, is a new technology that didn’t exist a few years ago but which is already facilitating billions of dollars of
investment activity a year. And with at least 85 real estate crowdfunding platforms already in existence, the activity
is poised to keep growing. Should you invest in real estate through one or more crowdfunding platform? If so,
which one? And if you do, how do you decide which specific deals to invest in? This Financial Poise webinar
walks you through objective answers to these questions in plain English.
As with every Financial Poise Webinar, each episode is delivered in Plain English understandable to investors,
business owners, and executives without much background in these areas, yet is also valuable to attorneys,
accountants, and other seasoned professionals. And, as with every Financial Poise Webinar, each episode brings
you into engaging, sometimes humorous, conversations designed to entertain as it teaches. Each episode in the
series is designed to be viewed independently of the other episodes so that participants will enhance their
knowledge of this area whether they attend one, some, or all episodes.
5

6. ABOUT THIS SERIES
Real estate has always been a popular asset class for investment. After all, as the adage says, “they’re not making
more of it.” Investors considering making an investment in real estate have a variety of choices: retail, office
buildings, industrial, raw land, and, of course residential. More and more investors are turning to the real estate
market to invest their funds. This Financial Poise webinar series covers several types of real estate classes that one
may choose to invest in, explaining where to look for opportunities; how to diligence them; possible funding
solutions; and best practice for execution.
As with every Financial Poise Webinar, each episode is delivered in Plain English understandable to investors,
business owners, and executives without much background in these areas, yet is also valuable to attorneys,
accountants, and other seasoned professionals. And, as with every Financial Poise Webinar, each episode brings
you into engaging, sometimes humorous, conversations designed to entertain as it teaches. Each episode in the
series is designed to be viewed independently of the other episodes so that participants will enhance their
knowledge of this area whether they attend one, some, or all episodes.
6

7. Dates shown are premiere dates; all episodes will be available on demand after
their premiere date.
EPISODES IN THIS SERIES
Episode #1 Investing in Residential & Multi-Family Real Estate 3/19/2018
Episode #2 Investing in Commercial Property 4/23/2018
Episode #3 Investing in Real Estate through Equity Crowdfunding 6/11/2018
7

8. NEW INDUSTRY
a. Real estate crowd funding is an industry that started on 2013 and now there
are over 100 Real Estate Crowd Funding Sites
b. With the passage of the Jobs (Jumpstart Our Business Startups) act in
2013, crowd investors can now pool their money into a single investment,
dramatically reducing the barriers to entry into real estate investing
© 2018 by DailyDAC, LLC d/b/a Financial Poise Webinars™ 8

9. 2 TYPES OF CROWDFUNDING
a. General solicitation Regulation D offerings
b. Pure online crowdfunding
© 2018 by DailyDAC, LLC d/b/a Financial Poise Webinars™ 9

10. RAPIDLY GROWING MARKET
a. Investors used crowdfunding to pour $2.5 billion into real estate in 2015.
More than triple the amount from 2014
b. With real estate crowdfunding, there are essentially two options for
investing:
a. debt investments
b. equity investments.
© 2018 by DailyDAC, LLC d/b/a Financial Poise Webinars™ 10

11. DEBT
a. When you invest in debt, you’re investing in a mortgage note that’s secured
by a commercial property. As the loan is paid back, you receive a share of
the interest.
b. Usually lower risk
c. Usually lower return
d. Upside – no obligation to manage the underlying real estate
© 2018 by DailyDAC, LLC d/b/a Financial Poise Webinars™ 11

12. EQUITY
a. Investing in equity means you receive an ownership stake in the property.
In this scenario, returns are realized as a percentage of the rental income
the property generates.
b. Cash flow from property
c. Potential gain on sale
d. Usually higher risk than debt
© 2018 by DailyDAC, LLC d/b/a Financial Poise Webinars™ 12

13. BENEFITS OF INVESTING THROUGH
CROWDFUNDING
a. No need to actively manage the property
b. Low investment amount - $5,000-$10,000
c. Tax benefits of real estate apply (depreciation, capital gains)
© 2018 by DailyDAC, LLC d/b/a Financial Poise Webinars™ 13

14. WHAT DO INVESTORS ACTUALLY OWN?
a. With equity investing, investors usually own an interest in a single purpose
entity that owners the underlying property
b. With debt investing, the investor could own a portion of the entity lender
or a portion of the note itself.
© 2018 by DailyDAC, LLC d/b/a Financial Poise Webinars™ 14

15. WHO CAN INVEST
a. Accredited investors – no limits
b. Non-accredited investors – limitations apply
© 2018 by DailyDAC, LLC d/b/a Financial Poise Webinars™ 15

16. REQUIREMENTS TO BE ACCREDITED
a. Income exceeding $200,000 in each of the two most recent years, or joint
income with a spouse exceeding $300,000 for those years, and a reasonable
expectation of the same income level in the current year;
or
b. Individual net worth, or joint net worth with a spouse, exceeding $1 million
at the time of the purchase, excluding the value of the primary residence of
such person (official SEC statement).
© 2018 by DailyDAC, LLC d/b/a Financial Poise Webinars™ 16

17. LIMITS ON NONACCREDITED
a. Title III of the JOBS Act of 2012 sets yearly investment limits based on
investors’ income and net worth. In October 2015 the SEC issued
Regulation CF which clarified those limits:
b. If an individual’s annual income or net worth is less than $100,000, he or
she may invest the greater of (a) $2,000 or (b) 5 percent of the lesser of his
or her annual income or net worth, over the course of the year.
c. If the annual income and net worth of the individual are both greater than
$100,000, he or she may invest up to 10 percent of the lesser of his or her
annual income or net worth, but not more than $100,000, per year.
© 2018 by DailyDAC, LLC d/b/a Financial Poise Webinars™ 17

18. LIMITS ON NONACCREDITED (con’t)
a. Spouses may combine their incomes for the purpose of the income test.
b. In calculating net worth, investors may not include the value of their
primary residence.
c. SEC Investor Bulletin dated 2/16/16 gives guidance on calculating net
worth: http://www.sec.gov/oiea/investor-alerts-bulletins/ib_crowdfunding-
.html
© 2018 by DailyDAC, LLC d/b/a Financial Poise Webinars™ 18

19. DIFFERENCE BETWEEN REIT
a. A REIT is generally very liquid, but you are investing in a company that
invests in real estate. You don’t have control over what properties are
selected or have much transparency.
b. Crowdfunding you have more control over individual properties and may
even invest property by property. As a result there may be more risk and
less immediate liquidity.
© 2018 by DailyDAC, LLC d/b/a Financial Poise Webinars™ 19

20. DUE DILIGENCE
a. With Crowd funding, the investor must perform due diligence on the
investment company as well as the underlying real estate
© 2018 by DailyDAC, LLC d/b/a Financial Poise Webinars™ 20

21. FACTORS IN PICKING A COMPANY
a. Transparency
b. Historical results
c. Co-investment
d. High volume
e. Bankruptcy protection
f. Low/limited fees
g. Pre-funding
h. Venture Capital backing
© 2018 by DailyDAC, LLC d/b/a Financial Poise Webinars™ 21

22. FACTORS IN SELECTING PROPERTY
a. Location
b. Size of property
c. Type of property
a. Commercial
b. Retail
c. Residential
© 2018 by DailyDAC, LLC d/b/a Financial Poise Webinars™ 22

23. PROPERTY CONSIDERATIONS
a. What are the biggest risks associated with different classes of commercial
real estate?
© 2018 by DailyDAC, LLC d/b/a Financial Poise Webinars™ 23

24. ECONOMIC DUE DILIGENCE TIPS
a. Determine market rates for similar properties in same area
b. Determine vacancy rates in area
c. Determine costs for repairs/painting and maintenance
d. Estimate operating costs
a. Fixed expenses – obtain copy of seller’s insurance policy, property tax bill,
utilities bills, management company bills
b. Variable expenses – obtain property’s financial statements & compare to actual
invoices. Consider cost to eventually replace roofs, HVAC, etc.
© 2018 by DailyDAC, LLC d/b/a Financial Poise Webinars™ 24

25. KEY CONSIDERATIONS
a. Tenant turnover
b. Collections
c. Maintenance
d. Potential for appreciation
a. Discounted price
b. Fixer upper
c. Rezoning potential
© 2018 by DailyDAC, LLC d/b/a Financial Poise Webinars™ 25

26. PROPERTY EXPENSES TO CONSIDER
a. Advertising
b. Cleaning and maintenance
c. Commissions paid to rental agents
d. Insurance premiums
e. Legal fees
f. Mortgage interest
g. Taxes
h. Utilities
i. Management fees
© 2018 by DailyDAC, LLC d/b/a Financial Poise Webinars™ 26

27. DIFFERENCES FROM DIRECT
INVESTMENT
a. Lower investment amount required
b. Allows for easier diversification
c. Does not require the work of owning and operating properties
d. Lack of control
e. Lack of transparency
f. More limited opportunity to complete due diligence
a. Title
b. Survey
c. Condition of property
d. Quality of leases, tenants
e. Quality of location
© 2018 by DailyDAC, LLC d/b/a Financial Poise Webinars™ 27

28. ABOUT THE FACULTY
WILLIAM MCGUINN
wmcguinn@sfgh.com
William F. McGuinn concentrates his practice in commercial real estate, subsidized residential housing and strategic planning
for entrepreneurs. He represents real estate developers, commercial landlords, tenants and various closely-held businesses in
complex transactions, locally and throughout the country. Bill’s real estate practice extends to the acquisition, development, sale,
leasing and financing of commercial, office, residential and retail properties.
In his affordable housing practice, Bill has represented owners and developers of thousands of housing units in numerous states
with multi-layered financing including taxable and tax exempt bonds, low income housing tax credits, HOPE VI, Community
Development Block Grants, Neighborhood Stabilization Program funds, Tax Credit Assistance Program and Tax Credit
Exchange Program.
Bill has also represented developers of conventionally financed projects, both residential and commercial. He also guides
buyers and sellers, landlords and tenants through all aspects of their respective transactions. Aside from real estate matters, Bill
has worked with numerous closely held businesses on a variety of matters including representing business in obtaining credit
facilities, structuring start-up organizations and the purchase and sale of a number of business entities. Bill is an avid sailor and
participates annually in the Chicago Yacht Club Race to Mackinac. Bill has also competed in the Transpac, racing from Long
Beach, California to Honolulu, Hawaii.
28© 2018 by DailyDAC, LLC d/b/a Financial Poise Webinars™

29. ABOUT THE FACULTY
LESLEE COHEN
LCohen@hershco.com
Leslee Cohen, Principal at Hershman Cohen, concentrates her transactional practice in securities law,
corporate finance and general corporate law. She counsels a variety of entities, from small
entrepreneurs and start-up companies to large established businesses, across many industries from real
estate to technology in connection with private placements of both equity and debt securities, including
venture capital, private equity and “friends and family” investments. Leslee also structures, negotiates
and documents significant business transactions, including mergers and acquisitions, tender offers, joint
ventures and other business combinations and financial transactions. In addition, she handles general
corporate matters including commercial contract drafting and review, stockholder and limited liability
company agreements and structuring, business restructurings, employment and consulting agreements,
and equity incentive plans and agreements, on behalf of a diverse group of clients. Leslee’s practice
encompasses Securities and Exchange Commission (SEC) compliance for microcap public companies
and committees of their boards of directors, providing counseling regarding disclosure and regulatory
obligations under the Securities Exchange Act of 1934 and the requirements of the Sarbanes-Oxley
Act, including corporate governance, ethics and executive compensation issues. Leslee also represents
broker-dealers and investment advisors in connection with securities law issues.
29© 2018 by DailyDAC, LLC d/b/a Financial Poise Webinars™

30. ABOUT THE FACULTY
SCOTT PICKEN
scottpicken@wealthmigrate.com
Scott Picken is the author of Property Going Global and the founder and CEO of Wealth Migrate, the
premier online global real estate investment marketplace. He is an expert in global real estate markets with
more than 16 years of experience. Wealth Migrate offers investors access to below-market real estate in first
world markets through crowdfunding technology with a low investment minimum of just $10,000
USD. Originally from South Africa, he founded his first real estate investment firm at age 26, International
Property Solutions (IPS). Through IPS and Wealth Migrate, he works to realize his vision of revolutionizing
the real estate industry through crowdfunding technology to provide a single hub for real estate investors to
build wealth and manage their portfolios.
Scott founded Wealth Migrate to provide a single hub for real estate investors to manage their portfolios and
build wealth. During the global financial crisis in 2008, he realized the opportunity in investing in
undervalued property markets was inspired to capitalize on the growing crowdfunding movement to open
access to wealth-building international assets to investors worldwide. Through Wealth Migrate and other
channels, Scott is spearheading “The Wealth Movement,” an initiative to inspire entrepreneurism in the
upcoming generation of business leaders and to expand access to wealth for all investors.
30© 2018 by DailyDAC, LLC d/b/a Financial Poise Webinars™

31. ABOUT THE FACULTY
JOY SCHOFFLER
jschoffler@casorocapital.com
Joy Schoffler serves as Chief Strategy Officer for Casoro Capital, a private equity and family office focused on creating real estate partnership
opportunities that are suitable, attractive, and efficient for high-net-worth individuals, family offices, and institutions. Within Casoro, Joy manages
the development and execution of their non-traded multifamily income REIT, Upside Avenue. Upside co-invests alongside their family office,
SMAs, and high net worth investors in multifamily investments with highly vetted sponsors throughout the U.S. Joy currently sits on the advisory
board of the SXSW Accelerator, AARP’s FinTech Accelerator, and the FinTech Professionals Association. Additionally, Joy spent four years on
the board of CFIRA working with the SEC and FINRA on JOBS Act implementation, which enabled online investing as we know it today.
Prior to joining Casoro, Joy founded Leverage PR, a public relations firm serving clients in financial services, technology, and real estate—where she
played a pivotal role creating the strategy which helped businesses, foreign economic ministries and brands like SXSW achieve strategic objectives
through business and communication advisory. After seven years, Leverage PR was acquired by NY based Caliber Corporate Advisers, a strategic
marketing communications firm. A former director of acquisitions and long-time investor of The PPA Group (Casoro’s parent company), Joy
helped acquire more than $250 million in real estate, helping the company to make Inc. magazine’s “Inc. 5000” list of fastest growing private firms
two years in a row.
Joy has spoken throughout the globe on financial technology and is a regular media contributor; she was the recipient of the Stiletto Woman in
Business “Entrepreneur of the Year,” Women Communicators of Austin’s “Outstanding Austin Communicator,” and the 2016 Austin Under 40
award. Joy served as a finance and public affairs officer in the Army Reserves and Texas State Guard.
31© 2018 by DailyDAC, LLC d/b/a Financial Poise Webinars™

32. The material in this presentation is for general educational
purposes only.
It has been prepared primarily for attorneys and accountants for
use in the pursuit of their continuing legal education and continuing
professional education.
IMPORTANT NOTES
32© 2018 by DailyDAC, LLC d/b/a Financial Poise Webinars™

33. If you have any questions about this webinar that you did
not get to ask during the live premiere, or if you are watching this
webinar on demand, please don’t hesitate to email us at:
info@financialpoise.com
Please include the name of the webinar in your email,
and we will provide a response to your question.
QUESTIONS OR COMMENTS?
33© 2018 by DailyDAC, LLC d/b/a Financial Poise Webinars™

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35. About Financial Poise™
www.financialpoise.com
DailyDAC LLC, d/b/a Financial Poise™ provides continuing education to
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websites, webinars, and books provide Plain English, entertaining,
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