Entries by mitch

Invest in America: Europe is on a Witch-hunt!

September 21, 2016 in /by

Billions of dollars in back charges. Examinations of sweetheart arrangements. Restraining infrastructure asks that objective development. Copyright insurance that is intended to secure nearby media organizations. Scarcely a week passes by that does not see some sort of assault from the European Union on one of the mammoths of the American economy. Organizations can entryway, challenge that. They can request and battle unreasonable choices. In any case, by the day’s end, they are likewise organizations, with shareholders to ensure. It is turning out to be progressively clear that there will be one and only genuine arrangement. Organizations will gradually pull back from the landmass. Basically, Europe will turn into a no-go zone for corporate America. The inconvenience is, it is Europe that will experience the ill effects of that more than the United States. The organizations under assault, for every one of their shortcomings, are the absolute most inventive on the planet. As they steadily pull up the drawbridge, it […]

Venture capital for everyone

September 18, 2016 in /by

Venture capital have made fortunes for a new investors. Wish you had put resources into Apple when it was still in its carport days? As crowdfunding bounced in ubiquity, another government administer now permits supposed unaccredited investors to set up as meager as $100 for a stake in new companies and little organizations. The SEC’s tenet, called Regulation Crowdfunding, will help organizations raise capital while additionally let ordinary individuals — and not only the affluent — in on the activity. Beforehand, these sorts of speculations were limited to authorize financial specialists, those with a total assets of $1 million, or who met other resource criteria. The principle change, which produced results in May, is a key part of the JOBS Act of 2012, which was intended to open the capital pipeline after access was extremely tightened in the wake of the credit emergency. Be that as it may, Venture capital comes at a cost. Venture capital start-up investing is the […]

Overview of Rule 506(c) and 506(b) Offerings

September 17, 2016 in /by

What are the real differences between Rule 506(c) and 506(b) Offerings? The chart below covers a few of the differences between 506(b) and 506(c) offerings. Please note that this is not legal advice. You should consult with your own attorney before conducting a 506(b) or 506(c) offering. Securities regulations (and interpretations regarding such regulations) are subject to change.   506(b) Offering 506(c) Offering Communications with Investors Companies may not advertise their security offering. Generally, companies may approach potential investors if there is a substantive, pre-existing relationship. General advertising permitted. Companies may advertise via social media, email, or offline. No substantive, pre-existing relationship with potential investors required. Eligible investors Accredited investors and up to 35 non-accredited investors who meet sophistication requirements. Only accredited investors. Accreditation Process Self-certification via a questionnaire is the general standard. Companies must take reasonable steps to verify accredited investor status. Self-certification via a questionnaire is not permissible. The SEC issued examples of reasonable steps for verification. Offering […]

Rule 506 of Regulation D – Fast Facts

September 17, 2016 in /by

Rule 506 of Regulation D is considered a “safe harbor” for the private offering exemption of Section 4(a)(2) of the Securities Act. Companies depending on the Rule 506 exemption can raise a boundless amount of cash. There are actually two distinct exemptions that fall under Rule 506. Under Rule 506(b), a company can be assured it is inside the Section 4(a)(2) exemption by satisfying the accompanying standards: The company cannot utilize general solicitation or advertising to market the securities; The company may offer its securities to a boundless number of “accredited financial specialists” and up to 35 different purchases. Not at all like Rule 505, all non-accredited speculators, either alone or with a purchaser representative, must be sophisticated—that is, they should have sufficient information and experience in financial and business matters to make them capable of evaluating the benefits and dangers of the prospective venture; Companies must decide what information to provide for accredited speculators, inasmuch as it doesn’t violate […]

2016 Top 10 Investing Hot Spots

September 16, 2016 in , /by

The national housing market keeps on warming up, with U.S. home deals hitting a nine-year high in May and home costs taking off 4.7 percent year-over-year around the same time. Add to that $636.7 billion in greatly required new development (once more, on a national level) up 5 percent in May over April, and it’s anything but difficult to see why the “talking heads” on TV are energetically bragging that great times are here for lodging once more. As a general rule, be that as it may, as each astute financial specialist knows, lodging is not national. It’s local, best case scenario, and by and large a neighborhood issue that is profoundly impacted by the individual speculator’s capacities and picked contributing technique. When you dissect the U.S. “hot lodging market,” you discover a considerable measure of alarming particulars in the points of interest. For instance, that $636.7 billion measurement flooding the wireless transmissions nowadays really is exceptionally deceptive in light […]

Invest in Self-Storage Real Estate

September 16, 2016 in , /by

Invest in Self-Storage Real Estate Self-storage is an individual asset class. It typically provides comparatively high yields and has also proven to be fairly recession proof due to its lower declines and default ratios verses other asset classes. Self-storage REITs have been a strong sector in recent years providing high dividends along with increasing stock prices. The self-storage industry is considered by many stock analysts to be “recession proof” based off of the sectors performance during the last economic recession. This article outlines the self-storage asset class, discussed recent changes and thoughts on how to use this information to make informed investment decisions. According to the research, there are over 54,000 storage facilities across the U.S. with 2014 – 2016 estimated revenues as follows: 2014 (estimate): $29.8 billion 2015 (estimate): $31.6 billion 2016 (forecast): $32.7 billion Self-storage can be categorized as one of three resource classes (the other two being inns and senior lodging) that are basically working organizations joined […]

Understanding the Risks of Alternative Investments

August 19, 2016 in /by

Danger is one of the key segments of contributing. Every open door accompanies its own particular danger or mix of dangers. To completely evaluate a venture opportunity, it is essential for speculators to see how related dangers could influence the security of their venture and any potential additions. The following are some normal sorts of danger that can be connected with option ventures. LTV The advance to-worth proportion is the proportion of an advance to the estimation of the financed resource. (e.g., a $5M advance taken out on a benefit esteemed at $20M will have a 5/20, or 25% LTV) When a credit for a sum is at or close to the assessed estimation of an advantage, the advance to-worth proportion is considered high. On the off chance that a bank ever needs to offer the resource for recover the speculation, as on account of default or abandonment, high LTV proportions convey an improved probability that the deal sum may […]

RULE 506(C)

August 15, 2016 in /by

RULE 506(C): WHAT CAN I SHOW ON MY SITE, TO WHOM, AND WHEN? The SEC no-action letters issued to FundersClub and AngelList early in 2013 created some confusion around the deal-specific information that can be shown to prospective investors. Let’s try to clear that up. Rule 506(b) Deals You cannot show your Rule 506(b) deals to just anyone browsing the Internet, because that would be “general solicitation and advertising,” which is permitted under Rule 506(c) but still prohibited under Rule 506(b). If you’re a real estate portal, you can say “We have great real estate deals on our site,” but you can’t say “Look at this multi-family rental project in Austin.” Both FundersClub and AngelList hid their deals behind a firewall. A user couldn’t see the deals until he registered at the site and promised he was accredited. In the 2013 no-action letters the SEC approved this arrangement, sort of. I say “sort of” for three reasons: The two no-action […]

FinLaw: Who will buy your company’s stock?

August 13, 2016 in /by

By Scott Andersen, Reprinted from CrowdFundBeat There is a maxim used by securities professionals that “stocks are sold, not bought.” This maxim summarizes the view that for a securities offering to be successful, it needs a broker-dealer to solicit and recommend the offering to prospective investors. Now with the JOBS Act and companies selling securities directly to investors through general solicitation (advertising), the question is raised: who will buy your company’s stock? Moving away from a broker-dealer to reliance on advertising alone requires careful planning for an offering to be successful. This is difficult for a company that has not raised capital before. For one, there may be no securities professionals involved in structuring the offering, or marketing or selling it. Other professionals, such as attorneys, may recommend a Reg A offering but are not retained to provide guidance on how to market a successful offering. Failure means a blow to a company’s reputation and coffers; simply wasted money. To […]

Evaluating Crowdfunding for Architectural Projects

August 13, 2016 in /by

By Rachael Everly, Reprinted from Crowdfund Beat Crowdfunding is often described as a practice to start off online investment campaign by popular people and generate funds or finances for specific related projects. This practice can leverage entrepreneurs, tech enthusiasts or businessmen who can spur some community support and start a petition to motivate people for investing some small dollar contributions. But can it help architects? How is Crowdfunding Relevant with Architecture? Crowdfunding can be applied to a range of investment opportunities provided for a viable project, services or the idea of a physical structure which can present itself as a worthwhile investment option for the people. People like to invest for something which is sustainable and worthwhile. Crowdfunding can fund construction projects if the role of the architect is clearly defined to present investment models and communication digital tools to encourage more and more people for investing. The investment can only be leveraged if architects work with local communities and […]