INTERVIEW WITH NAV ATHWAL, REALTYSHARES CO-FOUNDER NOLAND ARARACAP
Where in the United States are the
Your website states that accredited investors
investments located?
can passively invest in commercial real
estate alongside high quality Investment
We aren’t limited to any one geography but
rather have a national focus. We want to be the
premiere real estate investment platform and to
do so we need to have a variety of investment
opportunities all over the country. The first two
investments we funded were actually located in
Jackson, Mississippi. They were first position
trust deed investments secured by single family
homes offering a 9% secured return and a 50%
equity participation upon sale of the home. The
latest investment we funded was located in
Sacramento, CA and now we are focusing on
bay area investments. When possible, we are
also looking for socially impactful real estate
investments. If we can earn market returns for
our investors while simultaneously benefiting
the community by providing much needed
affordable housing, then it is a win-win situation.
Managers. What is an accredited investor?
The definition of an “Accredited Investor” is set forth in
the Securities Act of 1933 and is any individual
earning at least $200,000 a year or more, or $300,000
or more jointly with that individual’s spouse, or having
a net worth of $1 Million or more excluding their
personal
residence.
Currently,
our
investment
offerings are limited to accredited investors because
securities laws make it difficult, if not impossible for
non-accredited investors to participate. However, this
could soon change. The JOBS Act for the first time
will allow non-accredited investors to participate in
these investments.
However, the SEC has yet to
publish rules implementing this Act. I think we’ll see
proposed rules towards the end of Q2 or the
beginning of Q3, 2013.
Another thing that the JOBS Act did was lift the ban
on general solicitation and advertising for Regulation
D, Rule 506 private placement offerings. However,
that too was dependent on the SEC approving
implementing rules.
Two days ago the SEC finally
voted to publish final rules to effectuate this change.
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