What is the structure of the investment?

Investors purchase a share in a specially created company, known as a Crowdfunding Vehicle, that enters into an option agreement with the owner to purchase a portion of their property in the future for a nominal amount. Although the option can be exercised, the intention is for the owner to [more]

By |2021-07-27T13:31:44-04:00June 7, 2021|0 Comments

Can an owner list a property owned by their LLC?

Yes. If a property owner wants to use an LLC to list a property, they can do so by listing the LLC on the property's title. What are the tax implications of switching ownership of my property from me to my LLC? According to the IRS: A Limited Liability Company [more]

By |2021-08-20T14:32:43-04:00May 5, 2021|0 Comments

What does one share of the investment represent?

Each share represents $1 of investment. Let's say the house is worth $200,000 and the owner wants $40,000 for 20%. A special purpose vehicle (SPV) is created that owns the contract with the right to 20% of the future value of the property. Each share in the SPV is [more]

By |2021-04-04T15:51:48-04:00April 1, 2021|0 Comments

Is there an application fee?

Yes, there is a non-refundable $250 application fee that covers the cost of setting up an escrow account. This fee will be credited toward the remaining fees due when the funding round closes.

By |2021-06-24T09:42:28-04:00April 1, 2021|0 Comments

Do owners have to file anything with the SEC?

Yes, the key innovation of the crowdfunding approach to receive financing from your home equity is that you are issuing securities to investors against the equity you own in your home. To do this you will need to register with the Securities and Exchange Commission, as an issuer of [more]

By |2021-04-01T10:21:03-04:00April 1, 2021|0 Comments