Raise Capital Legally
Ready to invest in properties and projects bigger than you can manage alone? Then you're ready to syndicate. Our "Raise Capital Legally" host and Corporate Securities Attorney Kim Lisa Taylor, and co-host Krisha Young guides you through this complex and confusing world. Learn how to raise all the capital you need for real estate or small business and avoid legal potholes.
Each episode either teaches a subject related to capital raising or interviews service providers who offer services investors need as they grow their businesses. At the end of each show, Kim and her guests take live questions from the audience.
Kim is not just an attorney, she's also an investor. She has owned or controlled 30 rental properties; has been a general partner in a land development project; and currently owns vacation rentals. She is also the author of two Amazon best sellers on how to raise capital legally. Kim and her team have helped hundreds of clients raise ~$4B.
Information discussed during this podcast is of a general, educational nature and should not be construed as a legal advice.
Get one of our Amazon Best-Sellers mailed to you. Text the word SYNDICATE to 844-796-3428 and give us your address.
Raise Capital Legally
Advertising for Non-Accredited Investors? Yes, You Can - with Reg CF, the Rule 506 Alternative
Use Left/Right to seek, Home/End to jump to start or end. Hold shift to jump forward or backward.
In this episode, Attorney Kim Lisa Taylor sat down with Corneilous Cannon of CrowdfundMyDeal.com.
Corneilous explained how real estate sponsors can use Regulation Crowdfunding to raise capital from accredited and non-accredited investors through a registered funding portal.
We discussed how Reg CF differs from Rule 506(b) and Rule 506(c), which deals are best suited for this exemption, and what sponsors should know before launching an offering.
📚 Get one of our #1 Amazon best-selling e-books on capital raising — totally free! Click this link to claim: https://syndicationattorneys.com/free-ebook/
🗓️ Book a free 30-minute consultation with one of our business development team: https://syndicationattorneys.com/consultation
Welcome to the Raise Capital Legally Podcast and YouTube channel for Syndication Attorneys PLLC. This is your go-to source for insights on raising capital the right way. We dive into topics that matter most to real estate syndicators and fund managers on this podcast. I am attorney Kim Lisa Taylor. I am the founder of syndicationatorneys.com. Information discussed during this event is of a general educational nature and should not be construed as legal advice. We would love to talk to you. If you do have a legal question, we'll talk to you about how you can get a hold of our guest at the end of the show or also how you can get a hold of us through our website. There's a schedule call link so you could talk to one of us there if you have questions about anything we discussed today or any other securities-related matter. So our topic today is advertising for non-accredited investors. Yes, you can with Regulation Crowdfunding, the Rule 506 alternative. In today's podcast, Cornelius Cannon, our esteemed guest of crowdfundmydeal.com, will explain how real estate sponsors can use regulation crowdfunding, also known as Reg CF, to raise capital from accredited and non-accredited investors through a registered funding portal. We'll discuss how Reg C F differs from Rule 506B and Rule 506C, which deals are best suited for this exemption and what sponsors need to know before they launch an offering. So, Cornelius, thank you so much for coming to our show. You and I have known each other for years. We've crossed paths at many real estate events over the years. And uh I was really excited to learn not too long ago that you had set up this platform. I think it's been in operation for a while, but uh I just learned about it and I was super excited about it because this is a really hugely important tool that our clients need to know about, and it's another avenue for them to raise capital. So welcome to our show. We can't wait to hear what you have to say. So thanks for coming.
SPEAKER_02Thank you for having me, Kim. I've been waiting for the moment to actually get on a platform. Thank you so much. Yes, thank you for, I think you're doing a wonderful job, all the things you do.
SPEAKER_03Oh, thank you. Thank you. And I agree. I mean, I've seen you do some amazing things over the years. And uh, you know, you're really great at bringing people together and just always at the top of any new innovations that are going on. Cornelius, you're yeah, I always hear your name whenever whenever anything like that happens. So tell us a little about your background and what's crowdfunding my deal? What's it about?
SPEAKER_02Great question. So I guess uh a few years ago, I was in a very odd spot. And it was one of those spots where I was questioning, like, how did I get here? It seemed like everything I was doing just wasn't enough. My relationship wasn't going the way I wanted to, my business wasn't going, the money and the people, the person I was just wasn't right. And I realized I really didn't know what to do. And I say I went to my two favorite G's. I went to God, and God sent me to Google, right? I started Googling, like I started Googling, trying to figure out like how to get this financial freedom or this generation wealth people I would talk about, right? I kept jumping searching so forth because I was doing flipping houses and I was doing the um wholesaling, putting out band signs at 3 o'clock in the morning, but I just wanted something different. And that and I I came across this three-day workshop called apartment investing, how to invest in apartment investing, right? Financial freedom. And I thought I said, Got it. Let's try it. So I went to it, and um, you know, they it was a three-day workshop here locally, and it was great so forth. And fake a long story short, I ended up buying a program, coaching program, right? And I was like, This, hey, this thing gotta work. So I went to every course, every coaching call, I read every book. I like this thing have to work. And it seemed very simple. It was like, first you find a good property, underwrite it, then you raise capital and live happily ever after, right? Sounds simple, I can do it, right? So what um, so I spent weeks, even months, meeting, going to meetup groups, hopping on phone calls, trying to meet brokers. Then I will I'll go to, then I will sit down with spreadsheets, buying software, trying to underrate properties, right? Trying to make sure numbers work. And you know what happened? I got a deal on the contract. Man, I was so excited. It was um a 40-unit property in Texas, Arcana. Don't worry about it. If you don't know where that's at, I didn't know where it was at at first either. It's like this small city on the cusp of Texas and Arkansas. It touched me, though, half a city in Texas, half a city in Arkansas, right? So I so I never knew it, but however, my first deal, I was excited. And and I and I remember going to doing a walkthrough. I called a broker, we'll celebrate and so forth. Then all of a sudden he asked my coach, say, Great, can they get on a contract? So now I didn't walk through and I said, Now, how you gonna bring the money, raise, raise money? I'm like this, oh money, okay, gotcha, right? Oh, oh crap, now let's go get the money, right? So I'm gonna raise five million dollars in this 30-day time frame. So I'm back on someone back to my coach that I had, and coach said, Well, ask people in your community, in the coaching community. So I asked them, told them what was going on, and it seemed like a lot of them was brand new too. They asked me, Oh, you got a deal on contract? Show me what you're doing so far. I'm like, No, I need money, help me out. So it was like, um, so it's like they were brand new too. So she said, Well, ask your friends and families. I asked my friends and family, they didn't really know what was going on and so forth. And they said, Well, you need to start doing webinars. So I started doing webinars, doing that, trying to make things work. And and it seemed like everything I was doing just wasn't working. I'm like, so I once I was like, hey, God, help me out. Have something, please let something happen to help me out. And something did happen. They ended up canceling a contract because they couldn't raise money in time. And I had lost my money as far as my due diligence. I lost everything, and I really felt like a fail. Like, what did I do wrong? I did everything I thought was right. What did I do wrong? And I remember um they had an event called apartment best threat tank. It was like shark tank for apartment besting. And I thought it was the coolest thing ever. So I say, okay, so let me see how they're raising capital. Because I was like, I was like down on myself, like, man, something gotta give in life right now. So I went to the event, and um and I thought it was cool because a guy got there, he kind of stole his deal, he pitched it, and everybody um got a chance to listen to the deal and got a chance to invest. Like, wow, he actually raising money in his event. So, how can I do the same exact thing where I'm at? So I took that idea and I kind of created my own thing. They had a part of investing shark tank, I did a part of investing shark pool. Same but a little different. Pool, shark, tank, I get it, right? So um, so it was cool. But we did ours on Zoom, and every Thursday it was like hundreds of investors coming, pitching their deals, and learning by investors. And it gave me an opportunity to actually get parts on them deals. So we're raising capital. But one thing that changed was even though that we every every week people was pitching deals, people were investing in deals, money deals were getting done, but I realized something. When people pitch, at some point in time, people start raising capital and slow it down. What's going on? Even though we had a hundred people on a platform, half of them was a credit investor, because we did a poll, right? So even half of them couldn't even invest in the deal because of it was a public offering. Then of that half, most of them were like this. Well, I will put $50,000, $100 in if I can be part of the leadership program or the team. So now, like this, so now the thing is smaller. So then people who had the money like this, if you're doing it next week, I wonder what the deal can be next week. So they'll hold their money waiting, wait until the next deal comes along. I'm like, this, well, how? So like now I'm like, okay, well, this is the problem keep having. So I went to an attorney, I said, Hey man, hey, I have this event going on. Everybody like them, everybody learning how to invest, everybody want to invest, and it's a great opportunity. But however, how can I get everybody the ability to invest in the deals? And he said, Well, um, you got two options. Either you can do a reg A and be a part of every deal out there, but however, the liability of you getting sued is great. You probably want that at risk upon you, right? Be uh be a part of every deal. He said, Well, the other option is you can be um you can create a crowdfunding portal. I said, What's that? He said, they you create a portal, you be like the middleman, you bring the together and you charge a fee, but you can help everybody raise capital and help them invest, and they choose their minimum amount. And he said, Well, um, I said, Well, I don't know anything about that. He said, Well, listen, how about this? You handled the um the marketing side, and I handled the legal side, so we got a law firm. I said, Great. So it was a great partnership, and and we actually created that nine months later. We actually launched our crowd, went through Fenruk, got registered and so forth, launched our crowd from ideal offering. Came from that, from it, right? Well, now the idea, like, so now we had the concept, now we had the structure. Now the thing was like, how can we prove that work? And our first offering was a um a guy, a group out in Vegas. He tried Fowl Cis B. No, he was trying to buy 233 units in um in Las Vegas, Nevada, right? And he had a good mission. That it was a good mission because of the idea was to buy these apartment apartment, buy the apartment homes and take people who getting out of prison, giving them a way to get back um in civilian life. And the thing about it is this the government will pay above in rent so that we so they can charge more above as rent, and they have a said it. So it made sense on paper. But however, he tried five systems B, it didn't, he didn't raise enough capital with that. Then he tried five systems C, right? So D didn't raise so it still didn't get to cross um the threshold. So we actually um we actually um we met us met together and we said we'll do a crowdfund which will on Reg CF. So we did say do a crowdfund with your file system D. So we had both of them at the same time, same time. And what he did is when we did that, he changed his marketing message. So it wasn't about the numbers, it was about the movement itself, the purpose. People invested with emotion, they're back up with logic. So people who resonate with the opportunity, hey, we're helping people out, and also we can make money at the same time. And he was able to raise over $2.8 million through our crowdfund using that a different strategy method.
SPEAKER_03Okay, so let me stop you right there because I think we have to explain to the audience what regulation crowdfunding is and how it'll actually allow them to advertise for non-accredited investors, because I think it's important. What you've just said is that we've got when you're raising under 506B or 506C, you got to sell the deal, you got to sell your team, right? But when you're using regulation crowdfunding and that there's a little shift in the thinking that people are looking more at the investment and saying, hey, is this a worthy investment? Is this something that I'd feel good about investing in? And that's a different mind shift. So instead of just focusing on the financial metrics, they're actually looking uh, you know, at the purpose and the you know, there's a benevolent purpose. Who doesn't want to invest in that? So, how does that work then? How is it that people under Reg CF? Okay, so maybe this is where I jump in for a minute. Regulation crowdfunding is another securities exemption that's available to you as a syndication sponsor, right? So, real well, it doesn't matter if you're raising money for real estate or you're raising money for small business, you can raise money. It's just another securities exemption under the 1933 Securities Act that allows you to raise money. So, as you know, if you've ever heard me speak before, every time you want to qualify for exemption, you got to figure out the rules because you're gonna have to specifically follow those very same rules in order to be able to do your follow that exemption, claim the exemption, and then get the uh protections that that exemption affords you that allow you to go out and uh and actually legally raise the capital. So reg CF allows you to raise money from anybody, okay, as long as they limit the dollar amount of their investment. And if they want to go over that dollar amount of their investment, then you do have to take a look at maybe their uh income or net worth. And then there's also no limit again for this exemption on accredited investors, so any accredited investors can invest through it. But the but because you're soliciting non-accredited investors, the SEC has included this gate. All right, and so the gate is a regulation crowdfunding portal. So this is what Cornelius set up. It takes, it's not a small effort to set up a crowdfunding portal. This isn't something just anybody can go out and do. It's not the same as setting up a website. You actually have to go through a regulatory pre-approval process and application. You have to submit a bunch of uh forms and policies, procedures, and then you have to adhere to them. So there's a lot of rules that go along with setting up the platform and the portal. But once that's approved, then what Cornelius has is this portal where you can post your deal on his portal, and then he can help you promote it out to uh all these different groups of investors. Now you're gonna have to still do some work, right? Is that not true? That the issuer and the sponsor, you still got to drive people to that portal, right? You still got to advertise, you still got to promote. Uh, but instead of coming directly through you, those investors are gonna go through that gate. They're gonna go through that portal. The portal's gonna help make sure that they're qualified, that they're not investing more than they can based on the rules of that uh exemption. And uh then with that gate in place and using that portal, you are able to legally advertise for non-accredited investors and get them into your deal. Did I explain that?
SPEAKER_02Yes, you did. I think yeah, I think you did very well. And I think because of when people think about raising capital, I think that is a very heavyweight to think about what is raising capital, right? What is it? Matter of fact, and when does it start? Well, um, we always say that in order for crowdfunding work, you need a crowd. And um, we we have an acronym that we use called the RAISE method, R-A-R-A-I-S-E, right? RAISE METHER, right? So the first thing to do is um we tell people you have to rally behind the mission you're behind, right? Because not about what you know, not about who you know, about who knows you and what they know you for, right? So rally, what what do what do you want to be known for? Then A, we're gonna track. How do you track investors to you, right? You can do webcasts, you can do podcasts, you can do webinars, you can do lead matters, how do you get them coming to you, right? Then once you got them, you do I. You identify what they will invest in and what they would not invest in, right? Because a lot of people don't understand that as well, what they don't want to invest in in a threshold. Then from there, we go to um, so now we know that, now we go to S. Now what we do S for our showcase. Now we say, hey, this is what you're looking for in crowdfunding. We can do something called test of orders to say, hey, it's one I'm looking at buying this apartment complex and I'm thinking about making this about these prices here. Will you be interested? So now we already have a soft commitment before we before we even do the offering. Then the other thing is this E, empower or expand. Now, this is where crowdfunding is this best at, I think, because of we could um let's say a million dollars, use it um for math purposes, right? If we do simple math, a million dollars is a thousand dollars, a thousand people give you a thousand dollars, right? Now, question um do we have a thousand friends on Facebook? Probably so. We have a thousand friends and so forth. So the thing is is if you got if I got an apartment in your backyard and saying, hey, hey, do you want to you want anybody be part of this apartment for a thousand dollars? So question is do you want to buy another course or actually invest in an apartment building, right? And that's where the power goes in. So matter then, not only that, if people feel like they own the be a part of ownership, they share with what their friends, their families. Hey, we got apartments in our backyard, you can join for a thousand dollars. And that way it expands more than that's how one investor can become five, five become ten, ten become fifty because of people spreading the word for you, and your mission can go faster. That's what we've seen. That's how people come in, like that's how our first offering had 300 investors from our crop funding, one crop for an opportunity.
SPEAKER_03Yeah, and so you know, so you can and you can legally advertise on the internet, also, right? As long as you're driving people to the portal. So instead of driving them to your website, you're driving them to the portal, they can still talk to you, right? They're still gonna get your contact information at the portal, they're gonna be able to talk to you. You're gonna be able to post webinars and things there in order to get information out to everybody about your deal. But it's just a matter of making sure that they come legally through that portal and that, you know, they're gonna help you make sure that all of those checks and balances are in place, that you have the right offering documents, that you have the right messaging and that kind of stuff that helps bring people to the portal, gets them to invest in your deal. But uh, you know, what you just said was so powerful, Cornelius. I think we all know, like who of us wouldn't just like, hey, okay, I'll throw a thousand dollars at this thing. I mean, I do that on, you know, Robin Hood, like, oh, hey, this sounds interesting. Let's toss a grand in and you know, who knows if it ever goes anywhere, but whatever. You just kind of you're willing to do that, you're willing to take that risk, and maybe it's gonna pay off for you. Um, and so it's a way to kind of get your family friends into the idea of coming in, but not making such a huge commitment that uh, you know, I'm sure a lot of our clients have met that reluctance from family and friends. Like you said, I'll invest in your second deal. Let's make sure you get this one done first, and then I'll see if you were successful, then I'll do it the second time around. If you can if you can remove that high barrier, that $25,000 or $50,000 barrier to getting in, all of a sudden they'll maybe willing to invest the first time around. No, go ahead.
SPEAKER_02Oh, every single before because if we look at the numbers, because the SEC says is there's only 12% of America equals accredit investors. Only 12%. So that's so it's 88%, it's all an 8% of people can't invest in your deal in the first place. So now, as you as we said earlier, like accredited investors, they invest differently. So, however, if you brand new, you just get started, they don't know what they might probably give you a thousand, a hundred thousand dollars up front. But however, they may give you five, five or ten to see how you do to grow because of investors they want to invest, right? They want to they enjoy the game of it. They all they so I think that it's also give you an opportunity to open your doors to get those big whales and those big fish, because of, hey man, try me out. Let me see, give me a chance so forth. And that's what we've seen before because of then they then you get a chance to to grow and I they get a chance to differentiate their portfolio. And I think because of we, when we when you think about investing, I think that or raising capital, I think that we have to understand is these are real people, right? It's not they invest to the real people. These are somebody's moms, my sister, somebody brothers, my grandmother who investing for a purpose. And the thing about it is is if you honor that, you understand is they they have a bigger vision and understand what they're trying to invest for because of like I said before, the mindset shift. It's like sometimes when on this level, crowdfunding is a lot of people invest with start with emotion, then back up with logic. So it's like how do I get them triggered by emotion and so forth, right? We're doing it for a good call, we're doing it for this, or it's doing it in your backyard, we're doing it for um help you retire. Like they understand it and they can tangibly understand the process of investing. I think crowdfunding kind of got the phrase from from GoFundMe. It's kind of like a GoFundMe page, but however, this is for investing purposes. So you can do it for a donation, but however, we're doing it for investing. And they and the thing about it is I think that the other tangible thing about investing that I found out was the fact that they have ownership in something. Because as soon as you make that investment, now you have part ownership in a 44-unit apartment or a hundred thousand unit apartment. Like now you say, I own, I have ownership in that. And that and then then imagine you can give that to a gift to a son, give it a family, uh, father give it to a daughter, right? Hey, you have ownership in this building down the street. Like that's something that's tangible that you can actually claim, claim, and so forth. So I think that's one of the big things that we actually look for to create a movement.
SPEAKER_03Yeah, so let's talk a minute about what's the difference between 506B and uh Reg C F. So I kind of explained the rules of the Reg C F before, but 506B, which is the traditional friends and family exemption, that's still out there, it's still alive and well, but it's a little bit onerous because you have to be able to prove that you had a pre-existing substantive relationship with every investor before you make an offer. And that means that you have had to have had a financial conversation with them before your offer even existed. And a lot of times, you know, you get in the same situation that Carnielos was describing earlier, where he's like, wait, I got a deal. I I, you know, I did the work, I made the relationships with the brokers, I learned how to underwrite, I got all that done. And then, you know, it's like, oh, but now you need the money. And uh, you know, how do you how do you get past that? Uh, if you haven't already had those conversations and already have a pre-betted network of uh prospective investors that are willing to invest $25,000 or $50,000 in your deal, then you're kind of dead in the water at that moment, you know, and so this is where you can bridge that gap. All right, I don't have enough investors. Maybe I got enough investors that I could raise half of that money that I need or a third of the money that I need, but how do I get the rest? And so this is where you just open it up to the crowd, and now you can start talking to all your family and friends. You don't have to worry about did I have that financial conversation with anybody or anything like that, because they can all invest. The amount that they can invest to before they have to get qualified per new ones, what's that amount?
SPEAKER_02So that that amount is based upon their net worth, which is based upon and also what their net worth, so which is based upon that the credit that the investor self-attests to, they qualify themselves on our portal. Did they tell how much they can their net worth feels? Now, one thing that we try to educate people on is your net worth, how you evaluate your net worth. Because of it, say if you can sell in the market in like Pokemon cars, that that increase your net worth because they can sell in the market, right? Um, if you got Louis Vuitton bags, you got some old Jordans there. It's like like how do you increase your net worth? People don't understand that these things are valuable, they can increase your net worth. So as you start to calculate your net worth, it allows you to um to determine how much you can invest because you can invest a percentage of your net worth.
SPEAKER_03Now isn't there a minimum though? There's a minimum that they can invest without having to qualify at all. So it's 2,500. That's right. So anybody can invest $2,500. And then when you put your offering on Cornelis platform, then you can establish what's the minimum anybody can invest. If you want to set your minimum at $2,500, you can do that. Or if you want to set it lower, some people might even set it at $100, right? Just to get a certain number of investors in there. And uh, you know, the you know, the downside of it is that you end up with a lot more investors, but the upside is. Of it is there are a lot smaller investors. They're probably gonna, you know, not be hounding you every day about their small investment, wondering, you know, hey, how's it doing? What's going on? But you're gonna, of course, do be transparent, keep them informed, just like you would in any other offering anyway. So, you know, you're just gonna have a larger group on your uh on your webinars, right? On your uh status up project status updates.
SPEAKER_02And I think it's very important because a lot of people think about non-cred busters and they all say, Oh, I don't want to deal with them. But I'm saying, like, if you think about the math itself, because of a non-cred bus doesn't mean that what they make less than $200,000 a year, right? If your offering takes half of their income and you don't call them, of course they can be bug you, right? You took half their yearly income, you didn't call them. So, yes, they can be a pain in the butt because of why they don't have it. So, I mean, so yeah, so I think that with crowdfunding, it allows you to allow people to invest something that once again they the money that they can invest. And you're right. So now the other thing is you have more investors. Now we're in the age of software. Software management more stuff than anything. So you can you can automate so many different things, you can do the group calls and so forth to manage so many investors as well. And also, when you have more investors, usually that comes from people sharing your deal to other people, right? So it's like, hey, this opportunity that we got, hey, I I invested do you invest too? Because so just like a good restaurant, you tell more people about a good restaurant that the food is good, right? So, I mean, that's what it actually so we kind of build that emotional drive and so forth. That way that it spam more things, you get more, so that way that then what happens is your investors start bringing you deals. Hey, we I got a deal in my back in my backyard. Can we do this over here? Can we do profit one over here? So for if people start bringing you deals to do so they that way they can invest in your deal.
SPEAKER_03That that's a fantastic thing because you really can't do that with a 506B offering because you know you've got to know the people in advance, and you got to make sure that all these people that maybe want to refer people to you aren't out there illegally soliciting your deal either. So you got to be careful, you know, because people do get excited about your deal, they do want to share it, and this is gonna be a way that you can promote that and say, hey, if you know other people that like to invest in this deal, please, hey, just introduce them to us, uh, you know, send them to the uh portal, let them look at the deal for themselves. We're happy to talk to them. And all of a sudden, you know, your friends and family are investing with you in the same deal, and you're all, you know, excited about the same thing. So here's a question. So the just going back to kind of the 506B or 506C contrast with this, you know, in 506B, you got to have the pre-existing relationship, you have to have it documented, you can't do any advertising. And that's how you prove you didn't advertise is by showing that you had that pre-existing substantive relationship. It does allow you to bring in 35 up to 35 non-accredited but sophisticated investors, but they still have to be sophisticated. So that's more than just somebody with some savings and a job. With 506C, you're allowed to advertise, you can advertise freely, but the investors have to go through this verification process. And a lot of them don't want to be bothered. I can't tell you how many times we've done 506C offerings for people that have come back and said we want to convert back to 506B because uh we, you know, all these investors don't want to be bothered with getting going through the verification because it's kind of painful. They got to upload all their you know financial data or their income uh information to some third party and then wait for a letter. And it's just kind of a pain. They don't want to be bothered with it. But in Reg CF, even the accredited investors can they self-attest?
SPEAKER_02Yeah, so you everybody does it. So when you go through the portal, it asks you your income, your net worth, right? And that determines how it determines how much you are able to invest on a portal because of in a time frame. Now, if you're a credit, you can invest an unlimited amount, but if you're not a credit investor, you kind of regulate it to invest according to your net worth. Got it.
SPEAKER_03Okay. So but you don't have to figure all that out. So you as the sponsor. They do it. Yeah, they do it.
SPEAKER_02Sponsor, yeah, it's on them, it's on the investor. They just type in the numbers.
SPEAKER_03It's on the investor, but it's not the sponsor that has to go out and have those conversations. They're gonna do it right through your portal, right? And they're gonna anonymously be able to go on, answer those questions. They don't feel have to feel like they're sharing financial information with you that they might not be comfortable with. They, you know, are they doing it through this third party? Of course, this portal is gonna be protected, uh, so that you also aren't the one that's housing all of their personal financial information. And that's also a concern. You know, we were hacked last year, and somebody was looking for uh the whoever hacked us was looking for personal identity information like social security numbers, things like that. Luckily, we don't have that kind of information. But if we had it and you know, you might have that in an investor context, all of a sudden that could become a big oh, you know, a big concern. All right. So what types of real estate sponsors and deals are best suited for regulation crowdfunding? Is this a platform where somebody's gonna go raise $10 million on a deal that has to close in 90 days?
SPEAKER_02So I think that um that's a good that's a good question. And I think that crowd funds should be seen as I as so I think the best opportunity comes from a person who wants to do multiple deals at one time because of the time it takes to do it, because a we we the way we structure it is you have the funds ready in escrow before you actually get the deal, right? So like you have you have your offering up, you have the thing so that way you're not pressing so forth, then you can go shop for what they want. And that way that it's not a press, it's not a run for the trying to run for closing. So we like we build a crowd up, build anticipation up, and so forth. They put it get the money up and put it in escrow. Now you can get now as you look for the deals, you can get a deal that fit your crowdfund criteria.
SPEAKER_03Okay, so what I'm hearing from you, and let's just have this discussion so people understand it, is that on your platform or your portal, you're suggesting that they actually don't do a single offering like a single syndicate. Is it more like you set it up for a fund where you can have a business plan and then look for different opportunities to invest in? Is that how it works?
SPEAKER_02I think I think that's best because of it, it can go ongoing. Because, like I said before, because of once you bit when you build a momentum, you can launch another crowdfund. You can launch another crowdfund because of doing one off, because now you have 35 investors or 100 investors, they want to do more, right? So it's like now you have this momentum to do more. But if you just doing one off, then it's like you stop starting over again, stop and start over again. So we try to create how can we create momentum that can grow over time and you can create a real business behind it and a real movement, we call it behind it, behind your mission.
SPEAKER_03So if you're so just mechanically, then you're gonna create a fund that allows you to invest in multiple deals, and then you're still gonna do a big promotion. Hey, this is a deal we have under contract right now. If you're interested in investing, go to the portal and learn more about it. You're gonna have information about the fund, information about that property, but you're gonna explain to people, hey, you're not just investing in this one property because we're gonna go buy more and we'll let you know when we got another. So you can kind of just keep, you know, getting people that momentum as you're talking about to invest because hey, we've got another deal and another deal and another deal, you know, and how many in the 506C world, uh, you know, it's just a fact. And I don't mean to naysay people that are doing funds, but only a small percentage of people actually do blind pool funds that uh raise the money that try to raise the money before they actually have deals. And the reason for it is because it is the hardest possible way to raise money from your typical accredited or more sophisticated investors. And that is a hard way to go because they all want to wait till you have a deal. So, even with our fund clients, everybody thinks, oh, I'm gonna do a $5 million fund, I'll just raise $5 million away. I'll be able to, you know, right away, I'll be able to uh deploy it however I want. That's not how it works. It's still the same way that we're talking about here. You get if you got a $5 million fund, but you go get the first property under contract, you raise what you need for that property, and then the next time you get a property under contract, you do big promotion again that okay, we got our second property, get in. Now you're gonna have the advantage of these two properties, and you know, and three and four and so forth. So uh, you know, it's still all based on that initial getting something under contract is gonna help you get that momentum because it's hard to raise money before you have any deals, unless you've got enough family friends that believe in you that are like, hey, I'm willing to put in, you know, a thousand bucks up front, and you know, maybe you raise fifty or a hundred thousand dollars that you've now got to be able to go out and start shopping with for deals with. So it's possible with a reg CF offering that you could actually do it that way and maybe be more successful than a traditional blind pull fund.
SPEAKER_02Yeah, and because usually on what we do, we get a lot of talk maybe before we actually get an offering is when I do uh we do our test awards page, right? A test award campaign. And that allows you to basically shop the test awards and see what people's interest is in your deal. And you say something very valuable, like even people think that a credit investors. Now, like I said before, the math speaks for itself, it's 12% of America, right? And not all credit investors want to invest in real estate, not all of them know about they are credit investors, but however, now want to invest, but it's still 12% of America. So, um, so then you say if I was this B, if you say 35 non-credit investors, let's say you're trying to raise a million dollars. Let's do the math. 35 divided by a million is 28,000 per person, roughly, right? Now, do not can can everybody say they know 20,000, their family friends can give them $20,000 uh every day every offering? Probably not, right? You I mean, all your cousins and brothers can't give you $20,000 every day you have. So less so I mean, so less so I think that you already have the odds against you, but people don't really see that in that in those lines. I think the mouth speaks for itself. And I think that um that's why I experienced it so far. I think that's why crowdfunding is now people think that I love because once again, you're doing a public offering, so everything is public. But however, if you're doing everything according to plan, like it's nothing to worry about. It is like you've been transparent because of you won't be transparent with your investors. You want them to see what you're doing, you want them to do an audit and say, hey, we're really we're legit, we're better than everything, we're certified, here you go. And I think that's where the key is because of you build that trust through transparency and through by by by doing the work.
SPEAKER_03Yeah, I I think you're absolutely right about that. All right, so how long does it take? Well, so let's just talk for a minute about what the documents entail. So it's similar to a 506B or C offering. You have to have a disclosure document that explains to the investors all the risks of the investment. And uh that is called a form C. Uh that actually gets filed with the SEC, explaining to them what it is you're doing and all of that. So that's a little bit different because with a 506B or C, you don't file your actual offering documents with the SEC. They only get a notice that you're claiming this exemption, how much you're raising, and who's behind the deal. But in the uh, you know, with the REC CF, we've got to file this Form C. And uh, but it's a lot like a PPM. It has the similar kind of information that you would have in a private placement memorandum. So the investors are getting the same kind of material facts and information about how the risks of the investment and all of that. So you have the same kind of protections. Uh obviously, whenever you're dealing with securities laws, you have to be cautious about making misrepresentations, fraudulent statements, anything that could be construed as false. You have to be very careful that you and your team don't say those words. Um, because if you do, then somebody's gonna have a record of them. And later on, if something goes wrong, then they could use those things against you. So you've always got to be conscious of the fact that anti-fraud rules apply in every securities offering, no matter what exemption you're talking about. But okay, so we've got the reg, the form C, but you also have to have, just like in a regular offering, a company that they're investing in that uh, you know, is issuing them the security. So that's gonna be usually an LLC or limited partnership, and then you're gonna have a subscription agreement, and uh, they're going to subscribe to that offering, and you know, they're going to make their own attestations to you about whatever is required for their level of investment. So that, and uh, of course, they're gonna go through the questionnaire at the portal. Do they upload their funds through the portal?
SPEAKER_02So they invest, the investor will invest through the portal. So, like it's an investment portal. So they can invest through the portal, it can do it, they can qualify, they can they can qualify, they can put information through the portal, and they can see documents through the portal. So everything, the portal does everything right there. Like it's all like all in one compensation, they help manage the investors all in one thing. So you say the time fear takes. So um it's it varies according to time because of we say they need my four things to be successful, right? You need a company, right? A company has to be company. You say real estate, real real estate, a company owned the real estate, right? And that company has to get audited if you raise more more than a million dollars, like 1.2, right? That company needs to be audited. Even even when that company is brand new, it still need to be audited. So sometimes the audit says zero, zero, zero because nothing been in there, but however, it needs a public offering, and all those things fit on the form C, right? That form C get filed with SEC. So um then the fourth thing is basically advertising, right? Because of you can advertise while you're doing the stuff because you you can start momentum, but however, that you would take that that can take roughly it can take a week, right? If everything done fast, it can take average a week, probably less. You can you can do it fast according to what's it? And then we file an SEC, SEC or Eggger, and it's filed. And now you all run it. Now, however, the thing about Reg CL that people don't I want to uh preface is there's a 21-day hold time. What it means is what it means is the funds before you can pull the funds out, the offering has to be open at least 21 days. So I say because of sometimes when you're raising capital. So you asked me earlier when she a crowdfund get launched. So if you're trying to get a crowd fund and got closing within 21 days, you may be in a you may be in a bad situation. So best to get the um offering up, get a crop, get a crowd fund season, I guess that a period, because of it has to be the money has to be in escrow, that has to be open at least 21 days. Out of that, either that you can put money in, put money out, as much as you don't want to, but however, it has to be open for 21 days.
SPEAKER_03All right, so let's just kind of digest that a little bit. So if somebody invests through the portal, then their money is gonna go to an escrow account that the sponsor has set up, and then that those funds won't be released until whatever minimum offering amount may have been set.
SPEAKER_02We'll set the escrow up escrow set up on on our side. You'll set that up.
SPEAKER_03Okay, yes, and uh so then they've got to be held for 21 days before they can be released, and if there's any other conditions like the amount you raise or whatever, that that has to be met. All right. So what we've seen is uh and I think I'll hold this uh thought until we get to another question. But so we've got the 21-day hold. Beware of that, because like you said, if you're trying to close something in 30 or 60 days, but here's how it could work if you do this as not the sole way that you're raising money, but an auxiliary way that you're raising money, because you can have a concurrent rule 506 offering with a reg CF offering, and they can both invest into the same company, and you could even have different classes of investors go into come in through the Reg C F offering, then you're giving to the people that are coming in through the Reg D offering. So if you wanted to offer slightly different returns to people that are investing more through your Reg D offering that are coming to you directly versus the ones that are coming through the portal and investing these smaller amounts, you can do that. It's just that it all has to be disclosed to all investors. So the you know, your Reg D investors have to know you're gonna be bringing in these crowdfunding investors, and then uh the you know, crowdfunding investors have to know that you know the just different terms are being offered to these different people because maybe if you have an accredited investor that wanted to come in through the Reg CF, they may uh they may say, well, wait a minute, why don't I get these better terms? Uh, you know, invest a different way. You don't really want to create competition between the two, but you want to make sure that uh you know you're you're following the rules of both exemptions to the T and you're not doing too much crossover because that that is kind of prohibited, right?
SPEAKER_02I think that's a good point because of the rig. So you may ask people may ask why would you have both at the same time? Because one of the things is the reg CF is limited to five million per year. So if when you run both of them at the same time, you can raise unlimited capital, more capital. So what you said earlier was very key because of if you first thing investors using asks, are you a credit or non-credit investor, right? So what you could do is have two offerings, a reg CF and a Reg D. And both of them sit side by side, and both of them have a different kind of minimum. And so what you do is like you said, the turns may be higher for the for the if you invest more, you get higher returns. So that's a that's the way we try to incentivize people to raise more capital because while you have this one higher with higher returns, you have this lower returns. So somebody who can afford to um to invest more will will invest more and get rewarded too for investing more. So you so as we go through our as we go through your leak structure, we signed set it up in the beginning to understand is designed for that purpose, right? So we try to fit a five million without a credit investor because of the lower amount. No problem, all people invest more, we can incentivize them to invest more, allows you to raise more capital faster.
SPEAKER_03And then another thing that you brought up is that you have to do an audit. If it's your initial offering and you're gonna raise one more than $1.2 million, then you would have to audit that company. If you keep the limit to less than $1.2 million, then you wouldn't have to offer that company. But then there's some rules on subsequent offerings, right? As far as the audit limits start to drop.
SPEAKER_02So we try to shoot, so we try so you can do an audit review. So we try to audit everything just in case you may raise more money than you need it, right? So if you raise more money, great. If you don't you raise, I'd rather you raise more money than raise less money, you know, scenario, right? Opposed to getting short.
SPEAKER_03Well, so on auditing, though, you know, I think everybody's like, oh gosh, I don't want to go through an audit. You know, isn't that gonna cost me $15,000, $20,000? Well, what do people typically pay? I know there's auditing companies that are kind of catering to that Reg CF crowd. You know, what do you see as auditing fee?
SPEAKER_02So the thing I usually audit, yes, auditing it does can get expensive. However, well, we have found partners to do it for a lower amount, but also when you're doing a crowdfund so forth, you're saying we're starting a brand new company. So usually it's not that the offering has the company has to get audit. So usually it's not a lot to audit, so that way the price is look is lower. So um, so according to what you have, it varies that, but however, it's not as like a true full-blown, it's a full-blown audit, but it's not deep because of you have less transactions. That's right. That's right.
SPEAKER_03And then do you have to do the audit annually for as long as you have that company, or how does that work?
SPEAKER_02No, audit is done one time, done one time for the offering. Then after that, you have to you have to do a review of the you have to inform the investors what you have done after that. Okay, what's the company?
SPEAKER_03You could just use an independent CPA to review the the filings and uh make sure everything's correct. And that's not gonna be as expensive as uh having to do the full-blown audit. So, you know, these these are the things that the portal is gonna help you with is making sure that you're aware of these requirements, that you're complying with these requirements. They're not gonna let you post your deal until you've you've done everything that's necessary for the deal to be legally posted. So that's gonna help you because you don't have to just kind of like wing it and figure all this stuff out by yourself. Cornelis has partners that have worked with other issuers on his platform, so he knows you know who he can refer you to, and that's gonna help streamline that whole process. So um, I think that you know, don't be afraid of it. Yes, there's a few you know regulatory hurdles, as with every exemption, there's always something that has to be done. You just have to get uh you know become aware of the rules and uh make sure that you're following them so that you can maintain that exemption, and that's the portal is going to be your partner and making sure that happens.
SPEAKER_02So I think the one thing about it is a portal, we are your partner in it because if we get compensated according to how much you raise, so it's like we in it with you to make sure you're successful in raising it. I know many times what I experienced, I mean this this may be a legal, and it is a legal issue, but however, um what I've seen in the past where let's say if uh someone needs to raise 10 million dollars, right? Well they would do whatever do I talk about getting nine GPs to raise a million dollars each, right? And got to give out equity and so forth. And you got this this deck with about 10 people or 30 people on your pitch deck because why everybody trying to raise capital and so forth. But now with crowd, but for crowdfunding, you don't have to give up all that equity, you don't have to deal with that because of why you for example because like you have the power to go. We once again we in it with you to help you raise capital, but we don't see the equity. But however, we we're also you have your crowd and your team help build a crowd for you.
SPEAKER_03And once you and we do a lot of the lot of work before you actually offer and get launched, so it's like you don't need to have 10 baby mamas asking for money if you yeah, yeah, no, and the whole code GP scenario just deletes all the returns to everybody in the management, and uh you've got to be cautious, plus there's other you know, regulatory concerns with how those people are being paid and whether they have to be investment advisors, all of those things. You know, you now don't have to worry about that because you have the mechanism, you just need to get the marketing done. So, do you have uh marketing affiliates that help with generating a marketing campaign around a Reg CF offering?
SPEAKER_02Yes, we do. We we have to spend off a whole nother thing called trycrowdfunding.com and that's what it's really all about. We help build your before you even come on our onboarding process is helping you build your capitalizing roadmap and capitalising campaign. So when you come when you we come Board you would have a very structured way of how we're gonna get the money, where we're gonna get the money from um in our plan. Like example, like we we preach that raise method, right? What are you rallying behind? Right? We what are we known for? How we attract investors? How can we identify what they want? When we do our showcase, when do I test awards page? And how we're gonna empower people to raise California. So we we harp that so we we we very hard on that before we actually because of we want we want to be successful and want you to be successful, yeah.
SPEAKER_03And a marketing campaign can take a while to set up. So is this something? And can you say that web site again?
SPEAKER_01Uh try crowdfunding.com. So T R Y. Try crowdfunding.com.
SPEAKER_03Perfect. Is that something that our clients could go to start setting up a marketing campaign now, even before they have a deal? Yes, yes.
SPEAKER_02Go there, you go there, you book a call and we get one-on-one with you, and we'll set you up and see what best fits you because of, and because of the thing about it, is it's us being a portal, we can see what works in the past and what didn't work in the past. So you're not starting from scratch.
SPEAKER_03Yeah. Oh wow, that's fantastic. And you know, and Cornelis has been around for a while doing this. Like you said, he originated that shark tank event. He had that going for several years. He, you know, he understands all of this stuff, and you know, it's it's you know, it's sometimes it's a mystery to us who are in the trenches just trying to do the work to figure out oh, how do we also bridge that gap and and figure out how to market this stuff? So it's you know, maybe not an area where you really can do it effectively on your own. Um, and so I think especially when you're using an online campaign, you really have this the whole reason crowdfunding was created, it came out of the Jobs Act during the uh President Obama uh administration. And then the the Jobs Act was the Jumpstart Our Business Startups Act. And the whole point of it was that it was hard for people to get money from banks at that time, and we were going through the recession. They, you know, so they were the administration was trying to figure out a way to kind of broaden the availability of private investment opportunities to a wider audience of retail investors, and that's when they came up with Reg D Rule 506C, which allowed online advertising, regulation A, which allows you to do a streamlined public offering. You can raise up to $75 million a year with that. Um, and regulation crowdfunding was the one that I think got the biggest press at that time was because it was all about opening up opportunities to the crowd and letting the crowd decide and uh and also discuss which which investments were worthy. You know, I think that goes to what Cornelius has been saying, you know, you can you can add a benevolent purpose to your project, even though your project itself might not be aimed at some the you know uh group that you know, maybe you're just trying to do retail investments for multifamily, but you can always add a component to it with, you know, maybe you're gonna donate a share of the profits to uh some other worthy cause or something like that to try to get people behind you on that emotional level, like what Cornelius was talking about. So there's all way different ways that you can do that. And I know a lot of our clients do have benevolent purposes in the things that they do, and they have carved out a niche for themselves in those areas. So they would be perfect for this. I just think that you've got to be aware, it's maybe not the way to raise all the money for a deal you've got under contract and you need to close in 90 days, but it's another tool in your tool belt. And maybe instead of bringing in a co-GP and splitting the money with them and all of that, that this is uh maybe another option for you to try this and see if you can, you know, generate enough that uh you don't have to pay somebody else to bring in that $500,000 or whatever you're gonna bring in. Um, and we have had a client uh who very successfully co-marketed a uh 506C offering, I think it was a C, and also a Reg CF campaign. So same company, two different offerings, two different groups of investors, they uh were very heavy into marketing and promoting that offering, but I believe they reached their targets, and that's one that was on your platform. Here's a question I've always had for these crowdfunding platforms. So if you're if I have an offering and I'm gonna refer my investors to your deal or to your portal, are they gonna see everybody's offering or just mine? They're gonna see just yours.
SPEAKER_02Uh we we we focus on like some people do it, some of you're right. Some crowdfunding portals have a marketplace, try to promote other people's deals, but however, we're we being a real estate investor myself, I understand the value of keeping real keeping uh what's the name now. Um, so I we just design it where if someone sees your offering, they come through your funnel portal, they invest through your funnel, right? Your portal will have a funnel, it has Test of Warriors page, have an offering page, everything will be towards you, and they will not see anybody else's offerings on through that pathway. Matter of fact, they probably won't even see Crowd for my deal, they will see your company through our process. They see crowd for my deal in the footer because of we have to do disclosure and so forth. But however, everything will look like yours as well. So that's where the key thing at because of they are investing, as you said, in your beloved opportunity. Now, for example, let me give you some examples that we had. Like we one of the offering we had was Tracy. She had Shad. Shad is an acronym for She Has a Deal. And it is in her movement, but all it was all about helping women build their own hotels. Once again, that's her purpose behind it. So once again, they want they don't care about Craft My Deal, they care about Shad. So we so her funnel was all about Shad and Shad and how help women um build their own hotels. We had another one, Fabio. Fabio was all about helping Hispanic community own real estate and what's the name? They don't know they don't care about craft my ideal. They don't they want to know about Fabio and how how he helping Hispanic Hispanic Americans own hotels in America, mean own real estate in America. So his portal was designed for that. I think even you want your offer name Jason, right? Jason was a real estate, he's a real estate broker in Rochester, New York. He's got what his movement was invest in the rock. Simply about people who want to invest and own stuff in Rochester, New York. That's his purpose. They don't want you don't care craft my deal, they just want to know about that opportunity. So we designed it that way, Jake, because of that purpose, your mission is all about you. We just a partner along the way. We're your guide on the side. So make sure that you get to your own your goal.
SPEAKER_03Now, you do have a little bit of a marketplace though, right? Where all of your deals are posted. And do you do campaigns to try to attack attract people to your platform or to your portal where they might see all the different opportunities that are offered?
SPEAKER_02Correct. So we do have we do have our own, we do have our own marketing channel to get investors at Eddie. We have our um investor showcase, we showcase deals to our investors as well, because of we're doing our we testing our own campaigns to see what works, then we can use them for you as well. I mean for the issuers. So we're marketing things to see what lead man work, what thing works. Like we we have six different types of investors and how they invest the four. So we personality type. So we try to figure out we're doing a lot of research on the back end because of that way we can just hand it off to you to an easier path, hand off to our issuers, if you will.
SPEAKER_03All right. Um, so how do you get paid if somebody posts on your portal?
SPEAKER_02We get a percentage of what's raised.
SPEAKER_03Okay. And is it a standard percentage? Yeah, percent.
SPEAKER_02Right now, it's a standard percentage is a standard percentage. We're getting of the offering, the percentage is defined and we and is rate up to five million, that's a percentage up to five million.
SPEAKER_03Okay. And so uh that's something that you're gonna negotiate with Cornelius directly based on what your offering is. You know, we've seen other portals out there that are um sometimes a little seem a little cost prohibitive with the amount that they want, but I can tell you that when I've spoken to Cornelius in the past, his were not cost prohibitive. His uh his fees were very, very reasonable for the market and for all the things that he does. So I would encourage you to have that conversation with him and find out, you know, just explore, hey, we're doing this deal, we're gonna raise this much money. We think, you know, we've got this much from our network, but we'd like to do a little offering on yours. How could we go ahead and do that? We do have a client that we're helping do that right now. So, what you end up doing is you'll hire us to do your uh reg D offering, and then you'll also we'll do an add-on for the Reg C F portion of that, and then you can get on your way and and get set up on his portal as quickly as possible. All right. So um for the goal, quick. What what kind of common mistakes do you see sponsors make that maybe aren't as successful?
SPEAKER_02I think the common mistakes is the um what I said earlier, right? You find a deal, get it on a contract, on underwrite. I think that um we all talk, we all laugh at a concept, find a good deal, the money will follow, but however, we still do it, right? We try to find a good deal and hope the money will follow so forth. I think that um, and I think that people also people think that raising capital is a one-time scenario. Uh, I think that raising capital, I think that it's two transactions. One is creating a list of investors, second is getting a list of giving you money. So it's constantly you should be also constantly doing what? How can I build more lists? How can I get more people out there? How can people know who I am and what I do? And I think it's constantly, as a business, like a business, you are the owner of the business. If you can't do it, find somebody else to do it for you. Because the business needs somebody to do it for them. And I think that I think that that should be raising capital is all it's not just all about giving money, it's about how do I make more noise to people to know who I am and what I do. So I think that's that's the the issue that people have is they're like, well, I don't have a deal, so I don't even raise capital. Like, that's that's well, you should you should start before you even get a deal because of if you we use the ACS method, right? A track trade list of what they're looking for, they go shopping for what they want. Because of if you know what people invest investment want, you're not raising capital, you're saying, hey, this is what you told me, this is what you told me that you like, are you interested? Because it's a different position opposed to I'm doing this, give me money for this. It's like I didn't like that. It's not for me. So now you shopping for what you want. Now you have a list. Hey, this is what this is what Kim wants to invest in. Bam, hey, Kim, this is what you want, just do it. If not, gotcha, I'll find something else. So it's like you you are a concierge, and so I think that people is it's different. It's like they all say that he who holds gold, make the rules. I think that's where it boils down to.
SPEAKER_03Yeah, uh, I think those are all really great points. So, all right, so what should someone do? I think that if any of our uh, you know, our audience is watching this right now, my recommendation to you is be go check out crowdfundmydeal.com, look at the uh different types of offerings that are out there and how it works, get a feel for it, and then also check out try crowdfunding.com. So maybe you can start using that campaign. And it doesn't matter if you're raising money for Rex F or raising money for anything else, it's really just getting your campaign in place so that you can start creating that database of ready, willing, and able investors. And uh, and I think that Cornelius made a really good point just here in this last discussion is you know, you really still should be trying to get to know your investors, right? You should be trying to have a phone call with them so that you're not just bombarding them with things they don't want, because if you keep doing that, then they're just gonna unsubscribe and you won't have any be able to talk to them anymore. But if you have a conversation with them and start talking to them about what you would be interested in investing in, you know, we're seeing these kinds of opportunities. Are these of interest to you? Our clients, uh, we have a pre-syndication program for people who aren't ready to syndicate yet, but are just kind of in those beginning planning stages. And one of the things we offer them is an explainer pitch deck on how they can explain syndication and how it works to their investors so they can understand all the tax benefits as well as you know, where in the process do they get to earn money from cash flow, from sale of a property, or you know, depending on what kind of property it is. And so we want to just educate people. If you see your job as an educator and you approach it as I'm not pitching, I'm not selling, because you know, people feel uncomfortable with that. I'm just teaching. I'm teaching and I'm offering investors opportunities that they need because they need these investment opportunities in order to grow their own portfolio and achieve their own dreams. And they're all looking for them, and we're all a little bit skeptical of what could happen in the uh public markets because we know that they're fickle and they can, you know, fluctuate heavily up and down, and you could lose half your net worth in a day. So we are all a little, you know, looking for this diversity. And if you can help teach them how that could work for them, this just gives you the avenue to be able to teach them how to do it, even if they're not accredited, even if they're not sophisticated. You know, these are your coworkers, your family, your friends, your brother, your, you know, people in college, it doesn't matter what their financial qualifications are, if they want to invest up to $2,500, they can do that. So um, any parting words, anything else you'd like to share with the audience, Carnios?
SPEAKER_02Yeah, I also think that as we look at so many different things out there, I think that in this world in America, like real estate is one of the things that people understand, right? It's like it's you got crypto, all kinds of AI so forth. I think people need a boss to stay in of some sort, and people pay you. So I think that it when it comes down to foundation, even though it's I think that people want to, we had a point of time in life where it's like investing is not a want, it's a need now, right? You need to make your money grow faster than you spend. So I think that people want to invest, they want to be a part of it. You just say you just gotta give them an opportunity to do it.
SPEAKER_03Yeah, I think so too. And all right, so we've directed the audience to try crowdfunding.com and to crowdfundmydeal.com. Is there anything else you'd like them to do if they'd like to reach you, ask questions? How do they do that?
SPEAKER_02That's it. You can find me, you can find me there.
SPEAKER_03Uh excellent. All right, Cornelius, I am just impressed by you and all the things that you've accomplished and uh the things that you're doing for this industry, I think are huge. We're excited that you invited us to uh be part of it and to participate and to help you grow your platform. And we really want to we're committed to helping do that because we think that it'll help a lot of our clients, but not just them. It's gonna help their investors too, and not just the accredited and sophisticated ones, but the ordinary ones. And we all know them. We all know people that can use a boost, and you know, that's one of the reasons that we do what we do, and uh, and I know that's one of the reasons that our clients do what they do. And I am so happy that you have uh have created this additional avenue. And the reason I say created, it's not that Cornelius came up with Reg CF by himself, it's that all the other platforms out there, there are very, very few that do real estate offerings for real estate sponsors. And uh so uh, you know, we've looked before, we've talked to some before, some have come and gone. And uh, you know, it's it's uh, you know, Cornelius is out there, he's in a big way, he's committed to this, he's passionate about it. Clearly, let's uh let's all make this work together. We can all be part of the same crowd.
SPEAKER_01Thank you.
SPEAKER_03Thank you so much. All right, you have a great day.
