In a surprise turn of events, we found out that Hermits’ Rest Enterprises, our Cameron branch, was named Business of the Month by the Cameron, Texas Chamber of Commerce. It’s not up on their website yet, but when it is, you’ll find it here. I’ve always been impressed by the group in Cameron, because they make a big effort to support each other and to spread the word about hard-working businesses in the area. We were very happy to hear about the honor, and you know we were pleased, because we stood out in blazing heat for what seemed like forever to get our picture taken for the newsletter, website, and newspaper. Continue readingHermann says please like and share!
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.
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.Hermann says please like and share!
This morning, Carol said that awards don’t matter to her, because she’d gotten so many in the past. Her actual work with people matters more to her.
This came up because we were talking about Lee’s Chamber of Commerce award, and she brought up that she’d just been named a Zillo Five-Star Premier Agent, based on feedback from her past real estate clients. This put her in the top 9% of agents in the US. We were happy to hear this, and wanted to share it with our potential buyers, investors, and lenders.
Of course, Carol’s right that we are internally motivated to do good work and aren’t seeking recognition to make us feel validated. However, when there are a lot of folks who buy houses out there, it doesn’t hurt to shre that members of our company have been recognized by others for their hard work.
We were pleasantly surprised last night when the Cameron Chamber of Commerce started giving out awards of excellence, and suddenly they called out Lee’s name! We’d just been clapping our heads off for our friend Marie Christopher, who was singled out for her work at the library, so it was all exciting!
It was wonderful to have Lee’s work with fixing up houses and making the community better acknowledged. It never hurts to be recognized! All in all, it was a great event, and the Chamber really did an outstanding job of making sure people who work hard for Cameron are celebrated. All the honorees really deserved to be in the spotlight! Plus, we all got to eat delicious 44 Farms burgers and listen to a wonderful talk by the host of the longest running independent television show in the US, Bob Phillips of the Texas Country Reporter. Continue readingHermann says please like and share!
In this business, you want to find houses to renovate and then sell those houses. It’s hard to do these things if you don’t do some marketing. Of course, sometimes all the marketing in the world won’t get results, so you need to try something else.
We’ve been marketing away on the Parkwood house in Round Rock. Carol has been seeing a huge jump in visits to her TourFactory page every time she sends out a Ripl email push to her real estate clients. Can you tell which days she pushed, looking at this graphic? (I’d love to share the actual tour, but I can’t get the link to work, so I must be doing something wrong, sigh.) Continue readingHermann says please like and share!