(As reported by real estate educator Duane Gomer, http://duanegomer.com)
First, the name Jobs Act is misinformation. It has nothing to do with Jobs. The correct title is, “Jumpstart Our Business Startups Act.” It is intended to encourage funding of United States small businesses by easing various securities regulations.
The law was passed on April 5, 2012. The SEC adopted final rules to allow Title III equity crowdfunding on October 30, 2015. The effective date is May 16, 2016.
If you are interested in this process, you can find hundreds of articles on Google. A good one is the following by Chance Barnett of Forbes; the one change that interests me is that non-accredited investors can now invest. There are limits which are $2,000 or 5% whichever is greater for people earning or worth up to $100,000 and 10% or $10,000 for people earning more.
This would have made putting together Limited Partnerships in my era much easier. We could not advertise we could show the property to only 25 people and have no more than ten investors. Rather limiting.
AARP and many other consumer advocates and securities regulators say “The loosening of investment protections would expose small and inexperienced investors to fraud. You think?
Want to pay for some good legal advice in this area, I recommend Gene Trowbridge, Attorney, Lecturer, Syndicator, Genius, Friend from Lake Forest, the number 949-855-8399
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