|Posted on January 1, 2018 at 5:15 PM||comments (0)|
f you need to borrow money to make home improvements or consolidate credit card debt, where do you turn? In 2018, the answer may be peer-to-peer lending platforms. These are websites that match borrowers with investors. The ease and speed of the loan application and approval process is helpful. And P2P platforms tend to be more forgiving than banks when it comes to credit histories. While the latter often deny loan applications from consumers who haven’t borrowed in the past,
P2P lenders often use more than just credit histories to determine a borrower’s eligibility and creditworthiness. P2P loans may offer rates that are lower than those charged by credit cards companies. Interest rates vary depending on the creditworthiness of the borrower as assessed by the P2P platforms. And while P2P platforms use some unconventional methods for assessing creditworthiness, borrowers with high scores often get lower interest rate offers on the platforms.
APRs for P2P consumer loans from some of the largest platforms range widely from 7.99 percent to 36 percent, according to a report by the U.S. Treasury. Borrowing minimums and maximums for consumers can vary from platform to platform and range from as little as $1500 to as much as $50,000. Unlike bank loans, loans from P2P platforms can be done entirely online. Filling out an application often takes 20 minutes and applicants are informed of funding decisions within 48 to 72 hours.
Funding for a single loan typically comes from a variety of sources, as P2P investors want to diversify their loan holdings and invest in multiple loans. Though the name “peer-to-peer” may imply disintermediation, large institutional investors often participate in P2P platforms. P2P platforms charge fees to both borrowers and lenders. These include origination fees, late payments fees, and fees for unsuccessful electronic payments. Lenders are charged fees as well, such as servicing fees and collection fees if necessary. Loans to consumers are generally unsecured loans. You do not need to put up collateral and you do not have to worry about someone seizing your property for nonpayment.
There are other consequences. The P2P platform could ban you from taking out new loans or turn your account over to a collections agency. In any event, your credit score will suffer and make it harder for you to take out a loan or to secure credit in the future.
For more information, contact Douglas Slain at [email protected]
|Posted on September 5, 2017 at 10:15 PM||comments (0)|
Alabama The bill was signed into law and became effective immediately on April 9, 2014. Further information can be found at asc.alabama.gov/Registration%20Filing%20Req/Crowdfunding_guidelines.aspx.
Alaska The bill was signed into law on July 18, 2016 and became effective on October 16, 2016. Further information can be found at commerce.alaska.gov/web/dbs/.
Arkansas HB 1890 was introduced on March 2, 2017 and referred to Insurance & Commerce. SB 640 was introduced on March 6, 2017 and referred to Insurance and Commerce.
Arizona The bill was signed into law on April 1, 2015 and became effective on July 15, 2015. Further information can be found at azcc.gov/divisions/securities/regulatory_alerts.asp.
California AB 1517 was introduced on February 17, 2017, and referred to Banking & Finance and Judiciary.
Colorado The bill was signed into law on April 13, 2015 and became effective on August 5, 2015. Further information can be found at colorado.gov/pacific/dora/equity-crowdfunding.
Delaware The bill was signed into law on July 11, 2016, and became effective November 8, 2016. Further information can be found delcode.delaware.gov/title6/c073/sc02/index.shtml.
District of Columbia The rule was adopted on September 29, 2014 and took effect on October 24, 2014. Further information can be found at disb.dc.gov/page/equity-crowdfunding-dc-only-securities-offeringexemption.
Florida The bill was signed into law on June 16, 2015 and became effective October 1, 2015. Further information can be found at flofr.com/StaticPages/CrowdfundingIssuers.htm.
Georgia The rule was adopted and became effective on December 8, 2011. Further information can be found at garules.elaws.us/rule/590-4-2-.08. Idaho The rule was adopted and became effective on January 20, 2012. Further information can be found at finance.
Idaho.gov/Securities/AAGeneralOtherOrders.aspx. Illinois The bill was signed into law on July 29, 2015 and became effective on January 1, 2016. Further information can be found at cyberdriveillinois.com/publications/securitiespub.html#crowd. March 21, 2 HB 3791 was introduced on February 10, 2017 and assigned to Business Growth & Incentives.
Indiana The bill was signed into law on March 25, 2014 and became effective on July 1, 2014. Further information can be found at in.gov/sos/securities/4114.htm.
Iowa The bill was signed into law on July 2, 2015 and became effective on January 1, 2016. Further information can be found at legis.iowa.gov/docs/publications/LGE/86/HF632.pdf.
Kansas The rule was adopted and became effect on August 12, 2011. Further information can be found at ksc.ks.gov/index.aspx?NID=121. Kentucky The bill was signed into law on March 19, 2015 and became effective on November 6, 2015. Further information can be found at kfi.ky.gov/industry/Pages/crowdfunding.aspx.
Maine The bill was signed into law on March 2, 2014 and became effective on January 1, 2015. Further information can be found at maine.gov/pfr/securities/index.shtml.
Maryland An exemption by order (MDCF) was adopted and became effective on May 16, 2016. Further information can be found at marylandattorneygeneral.gov/Securities%20Documents/Maryland_Crowdfunding_Order_5_16_16 _final.pdf. A separate exemption by order (MISBE) was adopted and became effective on October 1, 2014, and can be found at marylandattorneygeneral.gov/Securities%20Documents/MISBEOrder.pdf.
Massachusetts The rule was adopted and became effective on January 15, 2015. Further information can be found at sec.state.ma.us/sct/crowdfundingreg/crowdfundingidx.htm.
Michigan The bill was signed into law and became effective on December 30, 2013. Further information can be found michigan.gov/lara/0,4601,7-154-61343_32915-319233--,00.html.
Minnesota The bill was signed into law on June 15, 2015 and became effective on June 20, 2016. Further information can be found at mn.gov/commerce/industries/securities/mnvest/. HB 444 was introduced on January 23, 2017, passed the House on March 2, 2017, and passed the Senate on March 20, 2017.
Mississippi The rule was adopted on February 9, 2015 and became effective May 26, 2015. Further information can be found at sos.ms.gov/Securities/Pages/Crowdfunding.aspx.
Montana The bill was signed into law on April 1, 2015 and became effective on July 1, 2015. Further information can be found csimt.gov/securities/capital-formation/equity-crowdfunding/.
Nebraska The bill was signed into law on May 27, 2015 and became effective on September 1, 2015. Further information can be found at ndbf.nebraska.gov/industries/securities/intrastate-crowdfunding. LB 148 was introduced on January 9, 2017 and referred to Banking, Commerce and Insurance.
New Jersey The bill was signed into law on November 9, 2015 and became effective on August 12, 2016. Further information can be found at njconsumeraffairs.gov/bos/Pages/CrowdfundingFAQ.aspx. A 291 was introduced on January 27, 2017 and referred to Assembly State and Local Government.
North Carolina The bill was signed into law on July 22, 2016 and is pending final rulemaking. Further information can be found at sosnc.gov/legal/ThePage.aspx.
Ohio HB 10 was introduced on February 1, 2017 and referred to Financial Institutions, Housing and Urban Development.
Oregon The rule was adopted on October 15, 2015 and became effective on January 15, 2015. Further information can be found at dfr.oregon.gov/business/resources/Pages/raising-capital.aspx.
South Carolina The rule was adopted and became effective on June 26, 2015. Further information can be found at scag.gov/scsecurities/registration.
Tennessee The bill was signed into law on May 19, 2014, and rules became effective December 16, 2015. Further information can be found at tn.gov/commerce/news/18782.
Texas The rule was adopted on October 22, 2014 and became effective on November 17, 2014. Further information can be found at ssb.texas.gov/texas-securities-act-board-rules/texas-intrastatecrowdfunding. (NASAA) 4
Vermont The rules were adopted and became effective on June 16, 2014. Further information can be found at dfr.vermont.gov/securities/corporate-finance/corporate-finance-exemptions.
Virginia The bills were signed into law on March 19 and March 23, 2015 and became effective on July 31, 2015. Further information can be found at scc.virginia.gov/srf/bus/crowd.aspx.
Washington The bill was signed into law on March 28, 2014 and became effective on November 1, 2014. Further information can be found at dfi.wa.gov/small-business/crowdfunding. HB 1593 was introduced on January 24, 2017 and passed the House on February 20, 2017. SB 5680 was introduced on February 2, 2017 and approved by the Committee on Financial Institutions and Insurance on February 14, 2017.
West Virginia The bill was signed into law on March 15, 2016, and became effective June 6, 2016. Further information can be found at wvsao.gov/Securities/Default#NaN.
Wisconsin The bill was signed into law on November 7, 2013, and became effective on June 1, 2014. Further information can be found at wdfi.org/fi/securities/crowdfunding/.
Wyoming The bill was signed into law on March 3, 2016, and will become effective July 1, 2017. Further information can be found at soswy.state.wy.us/Investing/Docs/Wyoming_Securities_Act_Effective_07-01-2017.pdf.
Types of Businesses Using Intrastate Crowdfunding Grocery store, general store, exercise studios, software company, night club, music/real estate venue, farmers (family-run farm, dairy farm, farming coop), retail electronics store, technology companies (medical device, education technology, renewable energy), family-run manufacturing businesses, real estate firms (micro-financing, commercial property, construction), product inventions, hair salon, barbershop, entertainment platforms (movie, album, other media, over-the air digital TV station), electronic/gaming pub, dog groomer, sushi restaurant, ice cream maker, baseball bat maker, angel funds, defense consultant, food and beverage platforms, restaurants, apparel companies, service providers (home renovation, security alarm systems, food processing), senior care facilities, physician association, media art firms, purse maker, local product distribution company.
|Posted on May 13, 2017 at 12:50 AM||comments (0)|
Unregistered Real Estate Exempt Offerings
Using our template for a general partnership with a specific purpose you do not need to pay and wait for Regulation D exemptions. Private Placement Advisors LLC employs a general partnership vehicle to avoid almost all review by regulators. With no limited partnership or other passive interest created, no security is formed. This particular template is designed for real estate lenders and borrowers. To learn more about the advantages of unregistered, non-exempt private placements, contact [email protected]
|Posted on April 28, 2017 at 1:15 AM||comments (0)|
2016 saw a total of 23,292 Reg D offerings
The average offering size was $87.8 Million (offered not sold)
There were 307,764 total investors
The average number of investors per offering was 13.2
The banking industry had the largest total offerings in amount ($1.9 Trillion), number of offerings (7,083), and number of investors (115,536)
The travel industry had the smallest total offerings in amount ($484.2 Million), number of offerings (97), and investors (1,083)
|Posted on February 23, 2017 at 7:55 PM||comments (0)|
We are giving away any 3 of our 15 audio handbooks in exchange for reviews. All we ask is that you give the narration a 1 thru 5 star rating that is fair at Audible.com.
Choose any 3 of the audio handbooks below. Send an email to [email protected] and tell us your selections. We will email you the promotion codes and instructions on how to use them.
1) Crowdfunding on Steroids
2) Regulation Crowdfunding
3) How to Finance a Marijuana Business
4) Medical Marijuana Delivery Handbook
5) Hedge Funds for the Rest of Us
6) Crowdfunding Law
7) Business Brokers and Securities Laws
California Real Estate Exempt Offerings
9) California Real Estate Blind Pools
11) Exempt Offerings
12) Securitized Real Estate and 1031 Exchanges
13) Guide to the JOBS Act
14) Marijuana Money
15) Health, Wellness & Cannabis: A Cookbook
Choose any 3 of the above audio handbooks. Just tell us what you want at [email protected] We will email you the promotion codes to listen to the 3 titles. This offer is limited to the first 25 requests for each handbook.
To purchase audio handbooks on the JOBS Act and exempt offerings go to
About the author:
Douglas Slain specializes in crowd financing under the JOBS Act. He helps small businesses identify and solicit sources of private equity. He also manages a LinkedIn discussion group, State Securities Regulation, with almost 1600 members. After getting a JD from Stanford Law School, Doug practiced law in San Francisco and founded four national appellate law-reporting services now owned and operated by Thomson-Reuters.
Connect with Douglas Slain:
Web site: http://privateplacementadvisors.com
|Posted on September 12, 2015 at 10:05 PM||comments (0)|
1) Overpaying Buying a property that has solid value is the most important thing, but finding that property usually takes time and patience. The most common mistake is overpaying. You may want to start with a low-ball offer and work up to a price point before settling your deals.
2) Lack of in-depth knowledge of after-repair market values Most people find distressed properties either via foreclosures or short sales; that does not mean you are buying for less than the fair market value. Before bidding you need to understand the after-repair market value of the property or you may overpay Being patient while you search is key. The profitability of your rehab depends directly on the initial price at which you buy your property.
3) Property is not a “rehab” Some properties lack sufficient upside to make them viable fix-and-flippers. A house, for instance, that just needs some yard work, new paint and other cosmetic work leaves little opportunity to add value. Unless that house was obtained at a foreclosure sale or under unusual circumstances, it is unlikely to be discounted much and the brokerage commissions will eat into limited profits. At the other end of the continuum are properties that are close to being “teardowns.” Flawed foundations, systemic drainage issues, major roof problems, or environmental problems including mold – these are some problems that can be “beyond repair” economically.
Sweet spot? Ideal fixers often have poor curb appeal, bad landscaping, minor structural problems, and perhaps extensive interior problems. An ugly property often offers the most profit potential. Do not get overoptimistic about the economics of the renovations. Do not overestimate the increase in market value of the proposed improvements and do not underestimate the out-of pocket cost of those repairs. Cutting down view-obstructing trees or landscaping a backyard—these are kind of improvements that may make economic sense. You need to analyze how much value is added by each renovation (or other added value feature), and compare that value to the costs, while keeping in mind the value of comparable houses in the neighborhood.
4) Failure to have a well thought-out budget before bidding Estimating the acquisition costs and the interest payments on any borrowed money is straightforward, but rehab costs must be guessed at (and then tightly controlled). Property flippers are project managers as well as investors. Timeframes for the project must be estimated and understood. A realistic budget not only helps you get organized but can serve to make sure that each contractor is bidding on work you want. Try to get line-item bids with each sub-project broken out separately.
5) Not using the best sources of financing Try banks and savings and loans, crowdfunding portals, angel investors, friends and family—in that order.
6) Failure to keep the project on time and on budget No matter whom you hire, you must be in control of all the details, including scheduling, budgeting, and monitoring workmanship. You are the one with the “vision” of the renovation so you will often have to be on-site to answer last-minute questions. Tasks performed out of order throw a wrench into the schedule that you have developed. You may want to set up incentives for the contractors in exchange for meeting project completion dates. You need to have a schedule.
7) Not having alternative exit strategies. Exit strategies are crucial when the market turns against you. Exit strategies include: lease with a purchase option; wholesale to another investor; rent out the property.
|Posted on July 29, 2015 at 9:05 PM||comments (1)|
Commercial mortgage brokers and others often consider hard-money loans as an alternative to traditional financing.
A commercial hard-money loan is appropriate for a borrower only when the deal’s circumstances are a match for the lender. For instance, if a borrower lacks sufficient funds for a down payment, that will still be a problem. Hard-money lenders require 30 to 40 percent down. In general, reasons for bank declines, e.g., lack of experience or weak sponsor financials, will also be deal-breakers for most hard-money lenders.
The most common mistake made in loan submissions is a failure to tell the story behind the loan. Hard-money financing comes at a high cost, is short-term in nature, and is used as a means to an end, not an end in itself. Hard-money lenders want to know the end and the means.
The story can be fully explained in a few sentences or in a couple of paragraphs, in an e-mail or by letter. Here is an example:
“Douglas Slain, the borrower, is seeking to purchase a distressed office property. The borrower is an experienced commercial real estate investor with more than 35 years of experience with this property profile. This property does not qualify for conventional financing because of low rental and its need for rehabilitation. Slain intends to use a commercial bridge loan for the purchase of the property. He seeks a loan for 60 percent of the purchase price for a term of 16 months. Once the property is rehabbed and stabilized, Slain will refinance within 12 to 15 months or pay back the loan and give away investor equity.”
Forman Capital’s Nancy Hirschbach recommends, “If you want to get the attention of any hard-money lender, initially send a simple one-page overview or e-mail that highlights the deal basics along with an executive summary, source and uses, and trailing 12 months form, if applicable.”
A loan summary should include the amount being requested, the property address, a property description, the loan-to-value ratio, the purchase price, value information, and anything similar.
Mike Giannone of Revere Capital LLC, says, “A well-organized presentation goes a long way when we are looking at 10 deals a day. Having to continuously ask for information in order to get the whole story is not the most efficient way to work on these transactions.”
Loan packages should be accompanied by a brief, well-organized loan summary.
Private Placement Advisors LLC has a team available to help you design and implement a securities-compliant action plan to find investors interested in early stage opportunities.
Contact us at 808-238-0398