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Monthly Archives: April 2019

Crowdfunding for Renovators

Crowd funding enables you to raise money from people you don’t even know.

Crowdfunding seems to be the latest buzz. I thought it would be good to know a little about it from the renovator’s perspective. Eventually, I’ll also write about it from the investor perspective.

What Is Crowdfunding?

In the loosest terms, crowdfunding occurs any time you raise money for a project over the Internet. It is a relatively new phenomena, originating with the Jumpstart Our Business Startups (JOBS) Act of 2012. That act created a loophole—and I use the word intentionally—by which businesses can market securities to the general public over the Internet. The act also demanded a “regulatory structure” to control those activities.

Even though the JOBS Act passed in 2012, SEC regulations—that “regulatory structure” were not in place until May 2016. Until then, companies were strictly forbidden from advertising securities, but it’s still not the Wild Wild West.

Crowdfunding Regulations

You really don’t want to get on the wrong side of the SEC, so you should always consult your own attorney—one who specializes in crowdfunding—before raising capital through this medium.
That said, here is a brief list of the regulations to enable you to determine if getting started with crowdfunding your project is worth the effort:

  • The total value of the project cannot exceed $1,070,000.
  • Individual investors are limited in the amount they can contribute by both net worth and annual income.
  • You must conduct the funding through an authorized online service, and you can only offer your project on one service.
  • Advertising and promotion of the offering are strictly limited to only a few bits of data, primarily where the security is offered and the terms of the security.
  • Once purchased, the securities can’t be sold except to the issuer or an accredited investor.
  • If you are determined to be a “Bad Actor,” you’re still screwed.

That’s not really enough information to go on. It’s not supposed to be. If you are seriously interested in crowdfunding a project, talk to your lawyer. Seriously.

You can also find more information at the URLs provided in the bibliography. You can also find a better overview on 7 Rules for Real Estate Investing podcast, Episode 48. That is a discussion with crowdfunding attorney Mark Roderick. (Roderick, n.d.) If you want to geek out on crowdfunding, you can follow Roderick’s blog. For more updates, follow Roderick’s blog.

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Frustration and a Fun Find

For now, the copier make a nice decorative accessory.

Sometimes frustration can lead to something good, so I always make it a point to look for a silver lining. Here’s how it worked last Friday.

Lee and Kathleen are planning to start a new business, which we’d run out of the Hermit Haus building. Because of that, we will need another office (there’s some regulation about it). So, we knew we’d have to convert at least one, if not both of our storage areas into offices when we do the remodel. In that case, where will I keep all my seasonal decorations (only I would ask that question first)? Where will we store excess office supplies, table cloths, and stuff for the event venue?
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Cabinets and Doors at Washington

Cabinet doors getting painted.

Painters have been in spraying the cabinets at the Washington house, so much of it is taped off. The garage is full of doors being painted. Their goal is to get three coats of paint on the cabinets before the granite shows up, which is currently scheduled for Monday. Even with just one coat on them, these custom cabinets are looking nice. The buyers are sure to appreciate having brand-new cabinets in their house!

Speaking of doors, here’s the new front door.

They also have brend-new doors and knobs. We were happy to learn that the door person Cody uses is really a good door hanger. We opened and closed the doors that are already installed many times. No sticking, no rubbing. Just opening and closing. It’s the little things!

All the trim is finished in the living room, and they managed to match the stain on the beams so well you’d never guess they weren’t all done at the same time!

All the outside lights are in. The big one is pretty big, but we like it anyway.

Next week the exterior painting will begin. We are all excited about that. It” going to make a huge difference in the curb appeal of the house, I hope!

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Russet Valley Gots Granite! Yes!

Guest bath granite and sink.

It’s beginning to look a lot like a house at Russet Valley. The granite, backsplash,  faucets, and kitchen lighting have all been installed this week, reports our project manager, Carol.

And they’re looking good, too. The granite goes well with the rustic theme and adds a nice contrast to the neutral walls and white cabinetry.

Carol has selected dark rubbed bronze faucets and doorknobs, to add more contrast.
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Decision Fluid

Spider Solitaire hand freshly dealt

I used to enjoy playing Solitaire on my phone when I was stuck waiting around for something. Then the sheer number of decisions I have to make in every game hit me. I was depleting my decision fluid for no reason other than boredom. Now I only play a game or two before bed while listening to podcasts.

Several studies have shown that we are capable of only a limited number of good decisions. Being forced to make too many decisions or to acquiesce to the decisions of others can degrade our decision making and ability to control our impulses. Keep that in mind when you consider that we make 35,000 decisions every day.

There’s even a name for this phenomenon: “Decision Fatigue.” Decision Fatigue is “no reflection on the intention, intelligence or effort of the decision-maker, but a simple result of depletion of the brain’s resources. After a barrage of choices, people are simply unable to rationally evaluate the choices at hand,” according to Kate Huley. In other words, we run out of decision fluid and need time to refuel.

Decision Fatigue applies to every aspect of our lives, even politics.

And while Huley states that more consequential decisions deplete our decision fluid more quickly than less impactful ones, every decision takes its toll.

What Can We Do?

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