1. Community Capital for Real Estate
Seth Wilson

2. Investment Crowdfunding = Community Capital
A true investment: investors can get their money back plus a return
You decide what to offer your investors
Open to accredited and non-accredited investors
Can be advertised (general solicitation)
Community capital happens when investment crowdfunding is focused on a community (whether geographically defined or affinity-based)
Community Capital

3. Why Community Capital?
Bypass institutional gatekeepers and go straight to people who care
Engage your community
Democratize finance: Everyone can participate on a level playing field
Keep money circulating in your community
Community Capital

4. 6 Legal Strategies for Community Capital
JOBS Act Title III Exempt Crowdfunding
State-specific Exempt Crowdfunding
Nonprofit DPO
Intrastate DPO
Rule 504 DPO
Reg A DPO (Tiers 1 and 2)
Community Capital

5. Two Ways to Access Community Capital
Directly for a specific venture or project
Indirectly via a community investment fund
Both can raise community capital via the same offering strategies, but a fund needs to consider an additional layer of regulation
Community Capital

6. Community Real Estate Investment Funds
Legal requirements
Fund is primarily in the business of real estate acquisitions or mortgage loans
Investors can’t have a right to redemption (but fund can consider redemption requests)
Community Capital

8. Securities Offering Process1
Compliance review and cleanup 2
Decide what kind of investment to offer: Debt, equity, revenue share, etc. 3
Decide on legal compliance strategy 4
Prepare offering documents 5
Prepare and submit application to regulators (if needed) 6
Work with regulators until permit is issued 7
Launch offering and bring in investment
Community Capital

9. Our Mission
At Cutting Edge Capital, our mission is to help build a more equitable, inclusive and resilient economy that works for everyone.
In the economy we envision:
Leaders can raise capital from their own community
Everyone can invest locally or in something meaningful
Money circulates in the community
The community builds wealth organically through a cycle of investment, growth, profit, and reinvestment.
Community Capital - April 26, 2017

10. Thank you!
Sign up for a free 1 hour consultation or download our free capital raise Marketing Guide on our website.
Learn More
cuttingedgecapital.com
cuttingedgecounsel.com cuttingedgex.com
Contact Us
General Inquiries:
Seth Wilson:
Community Capital