MCLEAN, Va., Nov. 6, 2017 /PRNewswire/ -- Blaine McLaughlin, chief operating officer of VIA Folio, says it's time for real estate issuers to move away from the traditional capital raising process and use online brokerage technology. McLaughlin, who recently spoke at the IPA Vision 2017 Conference, said investors have embraced technology in every other aspect of their lives, so real estate issuers must now meet them on their own terms.
"Too many real estate issuers are following a capital raising process that the online brokerage industry upended 20 years ago," said McLaughlin. "These issuers should break from convention and embrace an online alternative investment process, such as Reg A+, Reg D or S-3 capital raising. VIA Folio has worked with several real estate issuers who have successfully raised capital without a transfer agent, paper-based documentation and reporting, and wet signatures."
The additional benefits of using an online, alternative investing process include:
- Meeting advisors and investors on their own turf. More advisors are using alternative investments to diversify client portfolios and differentiate their business. They and their clients demand an online, easy-to-use, transparent subscription and investment process. Issuers benefit from working with a custody and brokerage platform that has an established advisor base, like Folio.
- Reaching accredited and non-accredited investors. Issuers that choose to raise capital under the JOBS Act have more flexibility when marketing to investors. In addition, those issuers who use an online platform like VIA Folio's can streamline the subscription and investing process with features, such as electronic signatures as well as paperless documentation and reporting.
- Offering different ways to invest. Advisors consider many factors, including security type, before making investment decisions. Issuers that use Folio's online brokerage technology can choose to offer publicly registered or private securities, including Reg A+, Reg D, S-11 and small-cap Reg A+ IPOs.
- Lowering investment minimums. For real estate securities issuers, high investment minimums are a necessary evil to keep expenses down. An online brokerage process – where subscription, closing, price reporting, statements and other services are done online – reduces administrative expenses, in turn enabling lower investment minimums.
About VIA Folio
VIA Folio powers the offering process, subscription, closing, custody, and distribution of alternative assets such as private debt and equity, REITs, IPOs and hedge funds. We make it possible for advisors and investors to create more diversified portfolios by holding multiple alternative and publicly traded securities in a single taxable or tax-deferred brokerage account. www.viafolio.com
This communication is for information purposes only and should not be regarded as a recommendation of or an offer to sell or as a solicitation of an offer to buy, any financial product. Financial products listed on our sites are only available to residents in the states where those products are registered. Offerings of securities on our sites are only suitable for investors who are familiar with and willing to accept the risks associated with those investments. Investors must be able to afford to lose their entire investment. Non-exchange traded securities are not publicly traded and are intended for investors who do not have a need for a liquid investment. There can be no assurance any security valuation is accurate, reflective of future sales prices, or in agreement with any market or industry valuations. Additionally, investors may receive restricted securities that may be subject to holding period requirements. A well-diversified portfolio can include different types of investments. How you invest is based on your tolerance for risk, the length of time you have to reach your financial goals, your specific interests and needs and other factors. Companies seeking investments are often in earlier stages of development and have not yet been fully tested in the public marketplace. Investing in non-exchange traded securities requires high risk tolerance, low liquidity requirements and long-term commitments.
©2017 FOLIOfn, Inc. All rights reserved. Securities products and brokerage and clearing services are offered by Folio Investments, Inc., a registered broker-dealer and member FINRA/SIPC.
SOURCE VIA Folio
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