Crowdfunding and its benefit to the real estate Investor

1. WARNING: This communication is not an offer
to sell a 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. ACS, ALB is a
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
Salespersons courses.
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3. •He is a Former Mortgage Broker and
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 Mortgage Loan Originator
Instructor With Ameritrain Mortgage
Institute.
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4. He is a Public Speaker, and member of
the National Speakers Association,
(NSA) Speaking on Real Estate issues, in
particularly Emotional Intelligence and
its impact on the real estate
Professionals and Crowdfunding for real
estate.
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5. He works with Real Estate Investors
that want to get funding for real
estate projects through their
understanding of their own
Emotional Intelligence and the
crowdfunding space.
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6. He is a Member of The National
Speakers Association, President of the
Empire Board of Realtist Toastmaster
Club and
2017-2018 Area Director for District 44
Area A Division 15 of Toastmaster
International
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7. He has authored two books,
Crowdfunding Simplified for the real
estate investor and Developer ISBN
0-99-67166-3-5.
Emotional Intelligence what a real
estate investor should know ISBN
0-99-67166-0-4.
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8. He’s an avid cyclist having completed
numerous century rides.
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9. •You can contact him for appointment at
•https://eddieedwards.acuityscheduling.com/
•For Speaking Engagement
•Email: eddie@eddieedwardsspeaks.com
•For Real Estate Investing
•Email: eddie@eddieedwardsrealestate.com
•https://www.linkedin.com/in/eddieedwards01
•https://twitter.com/Eddie_Edwards
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10. 6/27/2017 10
• Today we are going to talk about
• The Jobs Act of 2012
• Crowdfunding for Real Estate
•Capital Formation for small Businesses
Crowdfunding and Minorities

11. Terms
An accredited investor is persons with a
net worth greater than $1 Million
dollars excluding their primary
residence.
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12. whose 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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13. How many Accredited Investor are
there in the USA?
It is estimated that there are about
10,108,811
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14. as at
2013 computations by The Federal
Reserve Consumer finance
Microdata records.
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15. They Drives the RE CF Platforms
Along with Institutional investors,
Pension Funds etc.
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16. 6/27/2017 16

17. •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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18. It lift an 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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19. 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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20. •Title IV – Regulation A + or Reg A+
•Title V – Private Companies
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21. 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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22. •EMGC are exempt or at least partially
exempt, for a period of time from
certain disclosures that deter
companies from going public.
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23. 6/27/2017 23
•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).

24. Title II
Covers General Solicitation,
Accredited Investors and
Regulation D Rule 506 rules
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25. 6/27/2017 25
506D 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).

26. 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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27. Title III of the JOBS Act takes the main
theme of the Act and most think this is
the only title of the Act. It is Title III that
legalize crowd investing for the General
Public Average Joe Investor.
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28. 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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29. Title III
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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30. Title IV of the JOBS Act:
or Regulation A+ This Act permit the
sale of securities to both accredited and
unaccredited investors.
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31. However the issuer must file a mini-
registration with the SEC and
complies with relevant state law
(Blue Skies) in each state where
funds are solicited.
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32. 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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33. 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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34. 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 or 500
Shareholders who are unaccredited.
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35. 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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36. The four tiers/base of Crowdfunding
1. Donation Base
2. Rewards Base
3. Debt Base
4. Debt Base
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37. 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.
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38. 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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39. c) Debt Equity Base
Debt Equity based Debt crowdfunding:
In this method of crowdfunding,
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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40. 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.
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41. 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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42. The investor invest in the CF space
for a ROI.
The developer use the space to fund
RE deals.
Deals can be funded from $40,000
to the greater of $350 Million
dollars.
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43. • There are over 140 Different Real
Estate crowdfunding Websites.
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44. There are Comparison Matrix that
rank the different platforms to the
highest and the lowest.
www.bit.ly/2tuO25g
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45. Remember!!
Deals can be funded from as little as
$40,000 to the greater of $350
Million dollars.
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46. 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.
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47. 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 Projects to lend on.
Loans can be closed in as little as 5 – 10 days
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48. Let us examine four RE CF Platforms
Peer Street
Real Crowd
Realty Mogul
Realty Shares
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49. PeerStreet
• PeerStreet has a thorough due
diligence process on all loans they
put on their site and on Their
origination partners They are more
of a Secondary market for CF loans.
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50. For lender partners, they:
Review track records
Review financial Statements
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51. • Review licensing and adherence to
state lending laws
• Run background checks
• Review legal and underwriting
processes on all loans
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52. They
Perform independent underwriting
on all loans using a combination of
manual processes as well as big data
analytics
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53. Review an independent valuation
(BPO/Appraisal)
Ensure each loan complies with their
underwriting guidelines
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54. Review legal documentation on
All loans posted for investment goes
through data analytics and thorough
due diligence process before being
offered.
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55. Most of Their loans are short term
(6-24 months) with LTVs typically
below 75%.
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56. • PeerStreet apply a servicing fee on
each loan offered for investment.
• This fee range of 0.25%-1.00% of
the investment
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57. RealCrowd does
commercial real estate investments
only.
They do NOT do single-family home
or house flipping.
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58. Their average individual deal-size for
an investment opportunity on their
Platform is just under $30 million
while funds have ranged in size from
$15 million to $150 million.
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59. They do income producing assets like:
office, retail, multi-family and
industrial.
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60. Investments found on RealCrowd will
be diversified across the four main
investment types: Core, Core Plus,
Value Add and Opportunistic. Each
investment type carries with it a
unique set of risks & rewards.
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61. Core - very low risk
Core Plus - low risk
Value Add - Medium risk
and
Opportunistic - High risk.
Each investment type carries with it a
unique set of risks & rewards.
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62. We can view one of their investment
project here: http://bit.ly/2saSGJ1
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63. 6/27/2017 63
Realty Mogul only crowdfund on
Commercial Properties Nation wide
in Debt or Equity Positions
A deal in Chicago

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65. Equity Investment of
$2,040,000
In an Office Complex
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66. Realty Share invest in
Residential and Commercial RE
In both debt and Equity
Investment
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67. 6/27/2017 67

68. Where are we as Minority in the CF
Space?
Most are only aware of the
Donations and rewards Base
Crowdfunding
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69. • True Benefit is in the
• Debt and Equity Base
• This is where the true wealth lies.
• This is where Minority need to be
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70. • Today we spoke about
• The Jobs Act of 2012
• Crowdfunding for Real Estate
• Capital Formation for small Businesses
• Crowdfunding and Minorities
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71. Thanks for Joining me and I hope you
benefited from This presentation
and will now begin to use the CF
platforms for their benefits
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72. • You can contact him for appointment at
• https://eddieedwards.acuityscheduling.com/
•
• For Speaking Engagement
• Email: eddie@eddieedwardsspeaks.com
• For Real Estate Investing
• Email: eddie@eddieedwardsrealestate.com
•
• https://www.linkedin.com/in/eddieedwards01
• https://twitter.com/Eddie_Edwards
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