RG023 – What Is Crowdfunding? Part 1 With AdaPia D’Errico
In case you missed it, here are some of the highlights from our conversation with AdaPia d’Errico:
- Italian background born in Canada and lived in 5 countries! A true globetrotter!
- CMO for Patch of Land – Online Crowd-funding Company;
Something Unrelated to Real Estate Investing:
- AdaPia is a former intellectual property hunter for large brands!
- Stumbled across Patch of Land at the first ever real estate crowd-funding conference;
Nuts and Bolts:
What is Real Estate Crowd-funding? and what is the future?
- Real Estate Crowd-funding; Started with the idea of people pooling equity to buy a property as a group;
- Now it has evolved into syndication investing using the internet to find investors;
- Patch of Land pools investors capital together and acts as the senior debt position (i.e.: debt financing for a deal);
- How has Title 3 changed the game? Businesses can now raise up to a $1mill from unaccredited investors (no matter your income)!;
- Historically business owners could only raise capital from accredited investors only: a person who is worth over $1mill in net worth, or earns over $200k/year, or is in a relationship and the combined income is over $300k/year;
- Only 8% of investors are actually accredited meaning only a limited number of investors to investor into U.S. businesses;
- Investment limitations of non-accredited investors: you can only invest 10% of you’re your income or net worth;
- Where is Crowd-funding headed? The industry has grown 1000% in the past 5 years!
- The crowd-funding space in 2016 is similar how the Internet was in the early 1990’s. The changes to the JOBS act is revolutionizing the investor/business owner interface!
- Crowd-funding stream-lines the connection between investors and business owners who need capital; educating people on the process is key to the success of this space! Keep your eyes peeled!
Contact AdaPia if you are interested to learn more about the crowd-funding industry!
Ready, Aim, Fire!