By Greg Brown, Registered Representative at VENTURE.co Brokerage Services, LLC.
The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of VENTURE.co.
I was in Orlando, Florida this week to present to attendees of Coldwell Banker Commercial’s (CBC) Annual Conference on “How To Raise Capital Online.” We walked through changes to regulatory policies, as well as the nuts and bolts of how to set up an online machine to raise equity for deals. We talked about how the JOBS Act (2012), specifically the possibility of “General Solicitation” under the 506(c) exemption, is a big deal for real estate capital.
The questions from the group were great, as many in the room really understood the power of increased access to capital through the use of technology. It was exciting to watch the wheels turning in the heads of those in the room about how they could use the tools of VENTURE.co for their own assets and those of clients.
One great discussion had to do with asset recapitalization. Many current owners of investment real estate would be interested in “taking some chips off the table,” but they don’t want to pay the associated taxes, or they don’t want to go through the struggle of trying to find something to exchange into. We discussed using the VENTURE.co platform to help their clients source new slugs of Limited Partner equity, allowing owners to improve their cash positions as we get closer to the end of this real estate cycle (get back to me on the exact end-date).
Thanks for the time, CBC!