Real Estate Crowdfunding Investor Answers

Premier Crowdfunding is a website where you can browse real estate investment opportunities.

No. In Kickstarter, you make donations to businesses and get nothing in return other than “rewards.” On our platform you are making real investments.

This is Title II Crowdfunding, for offerings under SEC Rule 506(c), where only accredited investors may invest.

Yes. The JOBS Act of 2012 created three kinds of offerings, all of which are sometimes referred to as Crowdfunding. The other two are:

• Offerings under SEC Regulation A, often referred to as “Title IV Crowdfunding” or “Regulation A+.”
• Offerings under section 4(a)(6) of the Securities Act of 1933, often referred to as “Title III Crowdfunding” or “Regulation Crowdfunding” or “Regulation CF.”

We are constantly evaluating new offerings…

Yes.

In general, a person is an “accredited investor” who (i) earns at least $200,000 per year, or $300,000 per year with their spouse; or (ii) has a net worth of at least $1 million, excluding their principal residence. For the SEC’s full definition, please visit http://www.sec.gov/answers/accred.htm.

You can still sign up and see projects, you just can’t invest yet.

To get started, register and create a password. Then you can start seeing and using all the benefits of the site.

No, it’s absolutely free.

Yes. We use SSL (Secure Sockets Layer) for security by making an encrypted link between your browser and our associated servers. SSL is an industry standard for protecting the integrity of online transactions.

Under our Privacy Policy, we won’t sell or share your personal information with anyone.

Quality commercial Real Estate opportunities throughout the U.S.

We select projects based on various factors, depending on market conditions.

Allocating some portion of your portfolio to a direct investment in institutional quality real estate could provide you with a reasonably predictable and stable level of current income from the investment; the opportunity for capital appreciation; and diversification of your portfolio, by investing in an asset class that historically has out-performed the stock market. But we are not investment advisers and do not offer investment advice.

That’s up to you and your investment advisers. As a general matter, most people recommend a balanced portfolio that includes both low-risk and high-risk investments, with the right mix based on lots of factors including your age and your own tolerance for market fluctuations. As you consider how much to invest, you should definitely think of most of the projects on our site as high-risk investments.

We will stipulate a minimum investment in each project.

Real estate is a very risky investment and a financial equity loss is possible. However, history proves that risky investments often bear the highest returns. Before investing, determine what your own risk tolerance is.

No, you are only personally liable only to make your investment. We choose our legal structures to protect investors from personal liability.

First, review our active projects. When you decide to invest, click “I’m Ready to Invest” and we will guide you through the process. We’ll have you review important information about the project, we’ll ask you to sign our Investment Agreement, and then – and only then – we’ll ask you to pay for your investment.

Your money is held safely in an escrow account (which we don’t control) until the project is fully subscribed, i.e., until the full amount is invested. Then, it is distributed to the sponsor of the project. If the project is not fully subscribed, your money will be returned to you without any deduction.

You won’t own real estate directly in your own name, the way you own your home. Instead, you’ll own an indirect interest in real estate. Often, you will own an interest in a limited liability company that itself owns real estate. In other cases, you will own a promissory note that is backed by real estate. We’ll describe exactly what you own in the information we provide for each project.

That will vary from project to project. In some projects you would expect to receive a regular flow of income, while in others you would expect your interest to appreciate over time. We’ll describe the investment goals of each project as clearly as we can.

Yes! Real estate can be a volatile investment and you should be prepared for ups and downs.

We might provide some general educational material. At this point, however, we’re not allowed to provide investment advice. If you’re not sure, you should consult with your own financial and investment advisors.

Usually by a transfer straight from your bank account. There are no fees to you.

Usually, yes. For tax reasons we have to cap how much IRA money any one project can accept.

We review all materials available on the project and use standard industry metrics to estimate returns. You have to keep in mind that these are only estimates. It is very, very hard to predict what is going to happen two, five, seven years in the future. For any given project, our estimate is likely to be inaccurate either up or down.

Generally speaking, no. However, we will put forth reasonable effort to other investors first within the property ownership and then to other investors signed with Premier Crowdfunding, LLC. A fee of 5% will be charged if successful in finding a buyer.

When you click on a project, you’ll see a lot of information right away. For more information, after you click on the project click on Investor Information. There’s you’ll see even more in-depth information about the project and the investment.

No. No Federal or State agency reviews these investments. You and your advisers have to make the decision whether to invest.

Some of our offerings will involve individual properties, while others will involve multiple properties.

Yes, we give you a tool – we call it our Dashboard – to keep track of all the investments you make at our site.