Crowdfunding Real Estate Investments Is the Focus of New Website, CrowdFundingInvestment.com

Tempe, AZ -- (SBWire) -- 02/10/2014 --CrowdFundingInvestment.com, a website that is devoted to educating and defending the general public about crowdfunding real estate issues and investments, has just launched its new and easy-to-navigate site.

In addition to offering helpful information about various equity and debt real estate investments all related to crowdfunding, the website also gives specific information about 506(b) offerings, Title II 506(c) offerings, as well as pending legislation for Title III and Title IV of the JOBS Act.

As a recent article on Storify noted, thanks to recent legislation, real estate crowdfunding is now a reality. For those who are unfamiliar with the term, real estate crowdfunding involves using a crowdfunding platform to obtain investments for real estate-related projects and opportunities. However, unlike Kickstarter or Indiegogo crowdfunding platforms that typically ask for smaller donations, real estate crowdfunding usually involves investing thousands of dollars that will then be used to help fund a large investment into a property like a shopping center, office building or apartment complex.

As the article explained, any real estate company that wants to try crowdfunding needs to be fully compliant with the SEC and other regulatory agencies. For example, there are two kinds of offerings that a crowdfunding company can give: the aforementioned 506(b) and 506(c), both of which are the focus of the new CrowdFundingInvestment.com website because they are currently the two most preferred methods of funding by existing crowdfunding companies. With the rise of real estate crowdfunding websites like fundrise.com and RealtyMogul.com, investors more than ever need access to information that can help them navigate the rules and regulations so they can safely invest.

The SEC regulations concerning real estate crowdfunding should be known by any intelligent investor so they can understand the different types of investment platforms now available. “In a 506(b) offering, general solicitation of an investment property to accredited investors is expressly prohibited,” the article on Storify explained, adding that the company can advertise their crowdfunding platform to potential investors through ads, social media and other forms of promotion without violating the restrictions on general solicitation, so long as they are not advertising for a specific investment property in their marketing material.

“However, according to the SEC’s requirements of a 506(b) offering, a pre-existing substantive relationship is required before the newly registered user of the site can see any listings of available investment opportunities within the inner pages of the real estate crowdfunding platform itself.”

One way this relationship can be established, the SEC has decided, is to restrict users from seeing investment opportunities for a 30-day “cooling off” period from the time they register on the crowdfunding site.

Companies that decide to use the 506(c) offering can generally solicit accredited investors and encourage them to come to their website by publicly advertising specific investment opportunities, but they cannot allow their users to self-certify their accredited status.

Anybody who would like to learn more about crowdfunding real estate options, the 506(b) and 506(c) offerings, and the changes to the JOBS Act is welcome to visit the new CrowdFundingInvestment.com website at any time; there, they can become more knowledgeable by educating themselves about the various crowdfunding options.

About CrowdFundingInvestment.com
Established in 2013, CrowdFundingInvestment.com is a professional and a leading advocacy group for everything related to Crowdfunding Investments. The website helps businesses, regulatory authorities, government agencies and clients promote best practice through education, dialogue, information exchange and detailed resource material. The site works with regulators and other representative groups all over the world. CrowdFundingInvestment.com also aims to educate and inform the general public about various crowdfunding opportunities and the implementation of the JOBS Act. For more information, please visit http://crowdfundinginvestment.com/

Media Relations Contact

Angela Chapman
http://crowdfundinginvestment.com/

View this press release online at: http://rwire.com/457894