Crowdfunding continues to grow in popularity. It is a way to democratize the world of real estate investing, which historically has only been open to super-wealthy Americans. Its growth and positive outcomes have led to several changes being made in the space. Mark Roderick, our guest today, joins us to unpack these developments and the positive influence that they will have on real estate investing. In this episode, Mark presents an overview of SEC Title III crowdfunding and the current crowdfunding space.
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He talks about the difference between SEC Title II, III, and IV, and some of the evolution that has happened over time. He then dives further into SEC Title III crowdfunding, which used to be the ‘ugly stepchild.’ Previously, this title was highly restrictive, both for investors and for broker-dealers. These restrictions meant that not only was there very little money to be made for brokers but that investors steered clear of it. Mark walks us through the Title III changes and how by increasing the deal size for the brokers and the investment size for investors, it is going to transform the title completely. The revisions have eliminated glaring inconsistencies while increasing accessibility to different kinds of investors. Mark also sheds light on other SEC changes, some of the drawbacks of starting a funding portal, and future Title III changes we can expect to see. Be sure to tune in today!
Key Points From This Episode:
- Learn more about Mark and his expertise as a crowdfunding attorney
- An overview of the crowdfunding basics and the difference between Title II, III, and IV.
- Find out about some of the excellent changes the SEC has made related to crowdfunding.
- How broker-dealers with a wide product mix make real estate accessible to more people.
- ‘Title’ refers to the different types of crowdfunding as per the JOBS Act of 2012.
- Why the SEC Title III crowdfunding changes will make it easier to syndicate, even if you’re not a broker-dealer.
- An explanation of what a funding portal is and the simple steps to set one up.
- Learn about some of the drawbacks of establishing a funding portal.
- Some of the changes Mark expects will happen with Title III advertising.
- Other changes that the SEC has made around crowdfunding.
- How Mark gives back and where you can get hold of him.
[bctt tweet=”For the first time in American history, you can advertise small deals, private deals. And of course, what that means, in the age of the Internet is that you can raise capital online. — Mark Roderick” username=”whitney_sewell”]
Links Mentioned in Today’s Episode:
About Mark Roderick
Mark Roderick is a crowdfunding evangelist. He spends all his time in the crowdfunding and fintech space, representing issuers, platforms, investors, and other industry participants around the United States and all over the world. Along with this, he also speaks at conferences across the country and writes a blog that serves as a compendium of legal knowledge for the crowdfunding industry, crowdfundattny.com. He writes lectures on topics of raising money from investors, franchising laws and business contracts. Mark believes that by making capital available to a broader spectrum of entrepreneurs, and by making available to ordinary Americans, the kind of investment previously limited to the very wealthy, crowdfunding can reinvigorate American capitalism and begin to address the serious wealth and income inequality in the country.
We’ll walk through recent SEC Title III Crowdfunding changes and how they are going to transform the title completely. Here’s everything you need to know.
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