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Is it safe to go with a crowd-sourcing fund for Opportunity Zone investments?

What are the complications of using a crowd-sourcing site, if any, for OZ projects?

  • Phil Jelsma
    April 04, 2019

    You're investing in real estate. You really need to do your own due diligence on the property and sponsor, and not rely on a crowd-funding site.

  • Kostas Poulakidas
    April 03, 2019

    Something to keep in mind when using a crowd-sourcing model is how to verify Opportunity Zone investors are investing capital gain rollover, meeting the 180-day requirement, and ensuring both OZ investors, OZ funds and OZ business are compliant with the various OZ rules and requirements.

  • Ed Mofrad
    April 03, 2019

    Depends on the fund (how reputable, etc.). As for the complications, this question requires a detailed answer.

  • Paul Wassgren
    April 03, 2019

    There is nothing that prevents the use of equity raised through crowd-funding in combination with an Opportunity Zone investment. Of course, you need to comply with all the rules associated with both QOZs and crowd-funding.

  • Catherine DeBono Holmes
    April 16, 2019

    Any securities offering that uses public solicitation, including website platforms that are generally open for anyone to see the offering materials, will be required to comply with SEC Rule 506(c). Crowd-funding platforms, to the extent they provide offering information about securities being offered by Qualified Opportunity Funds, may be considered the type of public solicitation that requires compliance with Rule 506(c). This Rule requires that all investors provide the issuer with verification of their accredited investor status. Such verification may consist of tax returns, financial statements certified by third parties, or letters from the investor's accountant, attorney or investment adviser.


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