(NOTE: Want to learn how to flip houses to hedge funds? Click here for our “Partnering With Hedge Funds” special report.)
From Dennis Fassett, Cash Flow Mercenary...
Have you heard of the JOBS Act?
If you’re a real estate investor you should have.
It’s a law passed in 2012 that was intended to encourage funding of small businesses by easing various securities regulations.
Keep in mind that this is different from sites like Kickstarter. All Kickstarter can do is solicit donations or pre-sell their products. It can’t solicit for equity investments in projects. So you couldn’t use them to fund your deals.
The JOBS Act changed all of that.
According to Forbes Magazine:
“The JOBS Act would actually open up the market for something like a Kickstarter for equity funding. In this scenario, Average Joe (i.e. a non-accredited investor) can chip in up to 10% of his annual income or $10,000 (whichever is less) in return for a small stake in a startup."
It went on to say:
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Dennis Fassett
earned a BS in Economics and followed that up with an MBA in finance. After working and corporate finance and banking for several years, he started buying single family houses, and quickly built a very nice portfolio of cash flowing rentals. When the credit markets started to dry up and he couldn’t get any additional single family mortgages he shifted his focus to apartment buildings. He now has over $3 million in rental real estate. He manages most of it his self and still has a day job. Dennis has even created his own Private Equity fund to buy apartment buildings.