With over $4 billion reviewed, $280 million transacted and 6000+ investments, WealthForge is MacroCrowd’s broker-dealer partner who provides compliance and regulatory oversight.
In compliance with FINRA and SEC regulation all investments go directly to our broker-dealer partner, before escrow is reached. When escrow is reached, funds are then transferred to the sponsors of the deal until the term is completed.
President Obama signed the Jumpstart Our Business Startups Act (JOBS Act) into law in April of 2012. The intent of the JOBS Act is to provide more effective access to capital for small businesses and startups. Although a majority of the attention paid to Title III of the JOBS Act (which provides a legal framework to enable equity based crowdfunding), Title II potentially will have the greatest impact on MacroCrowd. While MacroCrowd will not rely initially on the implementation of the JOBS Act, Title II of the Act will lift the ban on general solicitation of certain securities and allow companies such as MacroCrowd to offer investment opportunities to accredited investors where no prior meaningful relationship exists. After Title III regulations are fully enabled by the SEC, MacroCrowd will be able to offer investment crowdfunding opportunities in their fullest sense, opening up to thirty trillion dollars of capital for investment in real estate opportunities around the nation. MacroCrowd will truly bring Wall Street back to Main Street.
All of our investors must pass our initial screening process to qualify for accredited, non-accredited, or foreign status. They are then able to examine potential investment opportunities when logged in to our platform. Our platform presents all due diligence items, property level financials, proposed deal structures and business plans, investment documents (including operating agreement, an investor questionnaire and subscription agreement) as well as detailed information on the operating partner. Once the investor considers the investment attractive enough to add to their portfolio, they simply click the “invest” button. They will then be asked to execute the required documents online with a secure e-signature process to secure their position in the investment. We present our investors with several options to execute the transfer of funds into a secure third party escrow account. All funds are held in this account until the investment is complete. Monies are then transferred securely to the investment fund and the transaction is closed since a new entity takes ownership of the asset. If the opportunity fails to reach its full funding amount, all funds will be returned to the investors.
Real estate investments typically operate on a longer time-frame than more liquid stocks or bonds. Each investment opportunity is accompanied by a thorough business plan that outlines the time-frame necessary to realize the investment. This may vary anywhere from one to ten years. The nature of the units in the LLC investment are considered “restricted shares” according to SEC guidelines and may not be sold openly to the public. It is our intention at MacroCrowd to either partner with an established secondary market provider or develop a proprietary secondary market for these securities to provide the ultimate flexibility to investors.
Our fees are dependent upon the type of investment and how complex its organizational structure is. We experience a return on the profits when the distribution payments are made as well as when an asset is sold, so we don’t get paid unless you get paid. We make sure the investment opportunity we present to you is solid and will be successful because our bottom-line interests are aligned with yours; we make money when you do – it’s that simple. Furthermore, once profits from the sale or distribution are given, these monies cover the administrative and legal costs of arranging the investment and the continuing reporting and management of the investment. Fees differ per property and are listed in the operating LLC agreement for your review. MacroCrowd may also use an affiliated operating company to supply asset management for the ongoing optimization of the investment.
Each asset is the responsibility of an experienced asset operator with the background needed experience to operate the asset at its peak and provide solutions. The operators are experts in the appropriate asset class, from apartment building to industrial facility. In addition, the opportunity to review the operator’s past investment experience and background prior to the investment will be made available to you.
Each investment offered by MacroCrowd is managed by a MacroCrowd-controlled LLC who acts as the “Managing Member.” This individual has sole and exclusive rights for the management, control and performance of the affairs of the LLC. These rights include, but are not limited to, fund distribution to investors, decisions regarding sale and leasing, operational decisions and reporting.