“If you want to go quickly, go alone. If you want to go far, go together.” -African Proverb
Now that we’ve explained the structure of our current and future offerings, we’d like to issue a call out to the crowdfunding community to raise the bar going forward. As I mentioned in Zeoli’s article, “it is extremely important that each portal be fully transparent and take the time to educate its investors about its offerings. If investors misunderstand the nature of their investment, this will be problematic for the real estate crowdfunding industry as a whole–not just that particular platform. At Patch of Land, we believe in taking an ally approach–not a competitor approach–when interacting with other platforms because when one platform takes a risk, they take that risk on behalf of the entire real estate crowdfunding industry.”
The RECF industry is growing and maturing quickly, but the industry is still young and many existing regulations were not written in anticipation of the RECF industry. As we wait for the regulators to catch up and issue more clarification and guidance, we encourage the RECF industry to help us grow and mature to make the RECF industry the best it can be. To that end, we thank our investors for trusting in our company and our team as we continue to work towards a structure that lowers investment risk for our investors, and we continue to invite feedback as to how we can become better. We also encourage the CEOs and General Counsels of other RECF portals to reach out to us to work together on coming up with a system and structure that best protects our investors and, thereby, the industry.
We’d love to hear your thoughts. Our Executive Team works hard everyday to raise the bar on transparency, compliance, and customer service. If you have any comments, questions, or suggestions for Patch of Land, we encourage you to send us an email at [email protected] or call us at (888) 959-1465. We’ll do our best to respond as soon as possible.
Hong B. Xia commented September 30, 2014
Hello, I'm one of your happy investors! I switched from buy-and-hold to your platform, because your services and offerings are far better than my old way of real estate investment approach. I discovered your website one month ago and I have made two investments. Though I also made investments thru other websites, I like your integration process the best from an investor's perspective.
Now I've a question for you. In the past, I usually bought townhomes for my Chinese investors and manage it for rental cash flows. I'd like to explore the possibility of forming an investment company, raising money in China and investing in your offerings. What I'm trying to figure out is the type of legal entity I should register and its U.S. tax implication. Do you have similar investors? If so, how do they structure the legal entity?
Thank you!
Hong Xia
Amy Wan commented October 2, 2014
Hi Hong,
We have actually had investors with the same exact idea. You will want to keep in mind that the legal entity should be able to qualify for accredited investor status itself--the easiest way to do that would probably be to ensure that the entity has a minimum of U.S. $5M in assets, though there are other avenues as well. Patch of Land is not allowed to give legal advice, but if you contact me at [email protected], I may be able to refer you to an attorney who might be able to help you.
Thank you for your trust and usage of Patch of Land's platform. We're so pleased that you've had a positive experience with us and hope that you will continue to do so. Please feel free to reach out reach out to us if you ever encounter any issues.
Many thanks,
Amy Wan
General Counsel