John Casmon

Crowdfunding and Fintech for Real Estate with Mark Roderick, Episode 92

Technology has made it easier to raise capital for real estate deals. Crowdfunding has grown exponentially, so we talked to Mark Roderick to learn more about crowdfunding and fintech (financial technology). Mark is one of the leading crowdfunding and fintech lawyers in the US with extensive knowledge of capital raising and securities law. On this episode, he talks about different ways to use the internet to raise money and the impact new technologies will have on the way we buy real estate.

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Key Market Insights

Crowdfunding is raising money on the internet
Two versions – donation based (think Kickstarter) and equity based
Crowdfunding is online syndication with 3 flavors: title 2, title 3 and title 4
All crowdfunding falls under the JobsAct
Title 2 is very similar to 506c for accredited investors
Title 3 is very different, can only raise $1MM annually
Title 4 can raise $50 million
FinTech – any technology disrupting the financial services industry
Many believe banks should be a disintermediary
Roboadvisor apps are apart of FinTech
Online syndication is not more risky than traditional syndication
Anytime you take money, you can be sued
When done properly, you should not be exposed to any actual liability – even if they lose money
Blockchain technology could disrupt the real estate industry
Blockchain is a database or ledger that cannot be changed and has no central authority – everyone must consent
Title companies and other “middle men” could be pushed away through blockchain