FAQs

If you have other questions please contact us by Phone: (877) 963-3667 or Email: Help@EquityDoor.com

EquityDoor is private, secure and simple-to-use online investment platform that brings together investors, borrowers, and sponsors. Investors can invest in real estate opportunities with as little as $1,000. Using the platform, investors can inspect investment offers and materials, such as legal documents and due diligence items, allowing them to make informed investment decisions in real estate projects. Legal documents, signatures and fund transfers can all be handled through the EquityDoor platform so that investors and issuers can complete their entire transaction through our secure website.

EquityDoor Investors: any person who commits capital to an Issuer’s project.

EquityDoor Issuers: a corporation that offers real estate project equity for a crowd of investors.

EquityDoor Projects: a carefully planned real estate property that offers a % of equity for investors from the Issuer.

Investor: Register and Create a password. Then you can start viewing projects and benefits. Once you have are ready to invest create an investor profile and invest.

Issuer: Register and Create a password. Fill out the Initial Review application and an EquityDoor representative will contact you for other details.

Investor: No, free to invest

Issuer: No sign-up fees, but there are costs and commissions in setting up a Project for crowdfunding.

EquityDoor offers access to a variety of real estate property types, including single and multi-family residential, industrial, self-storage, retail, general office, medical office, hospitality and etc. facilities owned by a corporation’s shareholders.

No. EquityDoor is a Crowdfunding Portal.

Investor return potential varies by project and are agreed upon between the project issuer and investor as part of the investment process. Equity investments have the potential to provide monthly or quarterly distributions while debt and preferred equity investments have the potential to provide monthly payments. However, there is no guarantee that this potential will be realized and investors could lose some or all of their investments.

Projects are posted to the portal once they are reviewed and checked by Crowdcheck for BAD actor.

Complete listing information will include general information about the specific project and also the associated legal documents that contain detailed “risk factors”.  Each investment project has a funding target that has been determined by the project owner, but the final combined investment made may be more than the target amount based on the success of the raise and the other capital commitments of the project owner.

EquityDoor’s escrow service typically will not collect funds until the project is approaching the time of the expected closing.

If the project falls significantly short of attaining targeted funding, or the transaction otherwise fails to close, 100% of your investment commitment will be returned to you.  If there is a material change to the terms of an offering or to the information provided by the issuer, EquityDoor must notify investors of the material change and each investor must reconfirm his or her investment commitment within five business days of receipt of the notice. If an investor fails to reconfirm his or her investment commitment with those five business days, EquityDoor will direct the refund of investor funds.

EquityDoor can not guarantee the performance of any investment.  There is always the risk that returns may fail to meet projected amounts and even that investors may lose all of their invested capital.  Investors should review closely the information provided on each investment opportunity that is of interest, including the “risk factors” described in the investor package of legal documents.

EquityDoor is committed to breaking down the barriers and enabling as many people as possible to invest in the real estate market. As such, we keep our minimum investment requirement, $1,000, amongst the lowest in the industry.

Note: Minimum investment amounts may vary as legal limitations could affect the number of investors in any one opportunity and thus might also impact minimum investment amounts.

If target funding amount is not met, 100% of any funds collected for the project will be returned directly to investors. Given we do not collect funds until a project a project is fully funded, we typically know in advance whether the investment subscription is going to be accepted by the project owner and can avoid any unnecessary movement of funds.

Investing in real estate carries inherent risk. As such, EquityDoor cannot guarantee any of the investment projects listed on our platform. Actual return rates may not meet those that were projected and some or all of the invested capital could be lost during the project. Investors should review closely the “Risk Factors” described in the investor package for each specific investment opportunity.

Private real estate investments listed with EquityDoor are not traded on a public market and cannot be easily traded, sold, or otherwise converted into cash. Thus, they should be considered as illiquid. Each project will have a specific, targeted “hold period,” which is the approximate length of time until investors may be able to exit the investment. Projected hold periods vary by investment and should be considered estimates. Actual hold periods may be longer or shorter than initially projected, and investors may never be able to exit an investment.  Expected hold periods are generally described on the “Overview” tab of any investment project listed on EquityDoor.

Funds are held in an escrow account until closing

There is always a risk that a particular project will require more money than projected. EquityDoor generally attempts to negotiate provisions in the sponsor’s operating agreement so that the EquityDoor investment vehicle will not be obliged to participate in any request for additional capital (a “capital call”). We also try to limit the amount of dilution, or interest rate payable, that may occur where some sponsor-level investors contribute additional funds and we do not. Investors should review the applicable investor package for more information as to the potential consequences of not participating in a sponsor’s capital call.

Investors in equity or preferred equity opportunities will generally receive quarterly (sometimes monthly) updates from the project owner as to the progress of the business plan and any developments related to the subject property. Updates are generally sent by email and are also posted directly to the online “dashboard” of participating investors.

Debt investments do not generally involve any periodic updates.

Investors will also receive timely tax documents for each calendar year in which there was a distribution or other taxable income from a real estate investment made through EquityDoor. However, if the project owner is delinquent in providing tax-related information, there can be no assurance that investors will not need to file an extension request with the IRS.

Investor return potential varies by project and are agreed upon between the project and investor as part of the investment process. Equity investments have the potential to provide quarterly distributions while debt and preferred equity investments have the potential to provide monthly payments. Distributions are generally transferred directly into the same linked bank account that was initially used by the investor when investing in the project.

Preferred equity investments have the potential to have “current” payments made on a monthly basis and the potential to have an “accrued” payout that is payable at the expiration of the investment period. Normal equity investments have the potential to have investors receive quarterly distributions, dependent on cash flow and at the full discretion of the sponsor. In addition to quarterly distributions, investors have the potential to participate in any net appreciation realized when the property is sold. An investor’s share of any of these distributions will be deposited directly into the linked bank account designated by such investor.

Payout schedules cannot be guaranteed, of course, nor can there be any guarantee as to return rates or the return of investor capital generally, regardless of the structure of any investment opportunity.

EquityDoor provides loans secured by residential properties (1-4 units) and commercial properties like apartment buildings. Most of these loans are rehab or construction loans with maturities ranging from 3 to 18 months. We require that the Borrower have a minimum credit score of at least 600 and that the loan meet the following criteria:

(1) Loan to cost (LTC) is less than 80%; and

(2) The estimated loan to after repair value (once the property is rehabbed) is less than 65%

For second position or mezzanine loans, we may lend up to 90% LTC.

NEED ANSWER

Cancellation Rights. You have the right to cancel your investment commitment in an offering at any time until 48 hours prior to the deadline identified in the issuer’s offering materials. After that, your investment will be final.

If the issuer does not complete an offering (e.g., the target was not reached or the issuer decided to terminate the offering), EquityDoor shall, within five business days, (1) give or send to each investor who had made an investment commitment a notification disclosing the cancellation of the offering, the reason for cancellation, and the refund amount that the investor should expect to receive; (2) direct the refund of investor funds; and (3) prevent investors from making investment commitments with respect to that offering on EquityDoor’s platform.

Investing in startups and other private companies is highly speculative and should only be done by investors who can bear the complete loss of their investment without any change in their lifestyle. Risks include, but are not limited to an issuer’s:

limited operating history,
lack of liquidity or any market for the resale of your investment,
possibility of fraud or misrepresentation,
arbitrary valuation of the company,
limited shareholder rights and the possibility of dilution (meaning the reduction in the ownership percentage of a company caused by the issuance of more shares),
inability to generate revenue or raise additional capital to fund operations,
inability to continue its relationship with EquityDoor or to publish annual reports where an investor obtains the most current financial information about an issuer, and
distributions, interest payments and other returns are not guaranteed.

Anyone can invest in a Title III crowdfunding securities offering. However, due to the risks involved with securities-based crowdfunding, you are limited in how much you can invest during any 12-month period in these transactions. The limitation on how much you can invest depends on your net worth and annual income. Following are the inflation-adjusted investment limits. If either your annual income or your net worth is less than $107,000, then during any 12-month period, you can invest up to the greater of either $2,200 or 5% of the lesser of your annual income or net worth. If both your annual income and your net worth are equal to or more than $107,000, then during any 12- month period, you can invest up to 10% of annual income or net worth, whichever is lesser, but not to exceed $107,000.

You will not be able to resell securities acquired through Crowdfunding for a period of one year, subject to certain limited exceptions, including sales back to the issuer, to accredited investors, to family members under certain circumstances (i.e. death or divorce). However, even after the restricted period, there is no guarantee that there will be a market for the securities.

EquityDoor does not provide any investment advice or recommendations. The posting of an offering on the portal is neither a recommendation, solicitation or endorsement of the offering by us. Any decision to invest shall be based solely upon your own evaluation and analysis of the offering and is made at your own risk. You are strongly advised to consult with your investment advisor and/or legal counsel before making any investment.

You are responsible for conducting legal, accounting and other due diligence review on the issuer’s and offerings posted on the Portal and to determine whether the investment is suitable for your investment needs.

Ongoing Issuer Relationships and Annual Reports. Following completion of an offering conducted through EquityDoor, there may or may not be any ongoing relationship between the issuer and the portal. In addition, under certain circumstances an issuer may cease to publish annual reports and, therefore, an investor may not continually have current financial information about the issuer. In some circumstances issuers are permitted by rule to cease filing annual reports, other issuers may completely fail in their obligation to do so.

Investing in startups and other private companies is highly speculative and could result in the complete loss of the investment. In addition, you will not be able to resell securities acquired through Crowdfunding for a period of one year, subject to certain limited exceptions, including sales back to the issuer, to accredited investors, to family members under certain circumstances (i.e. death or divorce). However, even after the restricted period, there is no guarantee that there will be a market for the securities.

An issuer has ongoing reporting requirements to post an annual report no later than 120 days after the end of the fiscal year along with the financial statements of the issuer certified by the principal executive officer of the issuer to be true and complete in all material respects and a description of the financial condition of the issuer, and if an issuer has available financial statements that have either been reviewed or audited by a public accountant that is independent of the issuer, those financial statements must be provided to investors along with certification by the principal executive officer, and specific disclosures. Following completion of an offering conducted through EquityDoor, there may or may not be any ongoing relationship between the issuer and the portal. In addition, under certain circumstances an issuer may cease to publish annual reports and, therefore, an investor may not continually have current financial information about the issuer. In some circumstances issuers are permitted by rule to cease filing annual reports, other issuers may completely fail in their obligation to do so.

The transaction between the issuer and the investor will be completed through the EquityDoor online platform, by registering an account, submitting an investment commitment, signing subscription documents, and providing information to fund your investment.
Any shares will be issued as securities and records will be centralized and recorded electronically in a system managed by the escrow agent.

EquityDoor simplifies the process of raising money for your project and saves you valuable time. Our platform allows you to list your investment opportunity, get approval and secure funding from crowd of many investors who are looking to invest.

Each opportunity is unique and the time it takes to complete funding will vary.

While we have streamlined the costly process typically associated with banks and traditional financing, there are still specific expenses related to establishing and managing the fund that invests in your project. These costs typically include legal, accounting and compliance expenses and EquityDoor requires reimbursement for these expenses.

Reimbursement expenses are not identical and will depend on the specifics of your investment opportunity. Please contact us here for more details.

We evaluate each potential project and meet with each potential issuer before listing a project to identify that the project fits certain criteria and to learn more about the sponsor’s experience and business history.

We perform background and credit checks on project sponsors and may also review sponsor’s pro forma financial projections, proposed investment structure and property-specific details related to age, quality and general market where the project is located.

Our intent is to provide investors with the best available information to make their personal investment decision. As such, the EquityDoor platform brings together the relevant investment details (typically provided by the project owner) to help investors research, compare and consider the many details behind various projects in a simple, single platform.

EquityDoor does not seek to provide a screening service or act as a legal, investment or tax advisor. Nor can we guarantee any investment. Listed projects generally involve securities that are not easily transferred and typically are to be held for extended periods of time and therefore carry significant risk. Final investment decisions lie with each investor. Investors should consult with their professional advisors with respect to any listed investment opportunity.

Listing your investment opportunity is fast and efficient. Simply create an account and submit an application here, and we will review it and respond within 24-48 hours. Once accepted, we will follow up to obtain additional information relative to your specific project to determine whether it is a good fit for EquityDoor members.

EquityDoor investors are looking for the following types of projects:

(1) Investments in commercial and residential properties such as apartments, retail, office and single family homes that generate Cash Flow and Value-Add equity;

(2) Equity investments in Fix & Flips located in high demand/low supply markets;

(3) Loans secured by residential and commercial real estate.

We review each project internally and complete background and credit checks on you and your company. Upon favorable review, we will post your investment project on EquityDoor.

An issuer has ongoing reporting requirements to post an annual report no later than 120 days after the end of the fiscal year along with the financial statements of the issuer certified by the principal executive officer of the issuer to be true and complete in all material respects and a description of the financial condition of the issuer, and if an issuer has available financial statements that have either been reviewed or audited by a public accountant that is independent of the issuer, those financial statements must be provided to investors along with certification by the principal executive officer, and specific disclosures. Following completion of an offering conducted through EquityDoor, there may or may not be any ongoing relationship between the issuer and the portal. In addition, under certain circumstances an issuer may cease to publish annual reports and, therefore, an investor may not continually have current financial information about the issuer. In some circumstances issuers are permitted by rule to cease filing annual reports, other issuers may completely fail in their obligation to do so.

An issuer that has offered and sold securities through the portal must file with the SEC and post on the issuer;s Web site an annual report along with the financial statements of the issuer certified by the principal executive officer of the issuer to be true and complete in all material respects, and a description of the financial condition of the issuer, unless the issuer has financial statements that have been reviewed or audited by an independent certified public accountant, in which case, the audited or reviewed financial statements should be posted. This report must be filed no later than 120 days after the end of the issuer’s fiscal year. An issuer is not required to continue filing annual reports if:

(1) The issuer is required to file reports under section 13(a) or section 15(d) of the Exchange Act ( 15 U.S.C. 78m(a) or 78o(d));
(2) The issuer has filed, since its most recent sale of securities pursuant to this part, at least one annual report pursuant to this section and has fewer than 300 holders of record;
(3) The issuer has filed, since its most recent sale of securities pursuant to this part, the annual reports required pursuant to this section for at least the three most recent years and has total assets that do not exceed $10,000,000;
(4) The issuer or another party repurchases all of the securities issued in reliance on section 4(a)(6) of the Securities Act , including any payment in full of debt securities or any complete redemption of redeemable securities; or
(5) The issuer liquidates or dissolves its business in accordance with state law.

Following completion of an offering conducted through EquityDoor, there may or may not be any ongoing relationship between the issuer and the portal. In addition, under certain circumstances an issuer may cease to publish annual reports and, therefore, an investor may not continually have current financial information about the issuer. In some circumstances issuers are permitted by rule to cease filing annual reports, other issuers may completely fail in their obligation to do so.

U.S. Securities-based Crowdfunding Under Title III of the JOBS Act Abstract: Title IIIof the JOBS Act created a new exemption from registration for Internet-based securities offerings of up to $1,070,000 over a 12-month period. The SEC adopted securities-based crowdfunding rules on October 30, 2015.

The Jumpstart our Business Startups Act (JOBS Act) was signed into law by President Obama on April 5, 2012, and represents an easing of security regulations intended to increase the funding that flows to small businesses in the United States, while opening up participation to everyday citizens.

Equity Crowdfunding is the online offering of a startup or private company’s securities for investment. Title III of the Jumpstart Our Business Startups (JOBS) Act permits anyone to invest in these securities offerings up to certain investment limitations.

These crowdfunding investments are made directly through EquityDoor, which is acting as a registered crowdfunding portal, and investors may participate in these offerings by investing directly through the EquityDoor website. Investors who are interested in participating need to carefully consider whether investing in crowdfunding offerings is appropriate for them, meaning that each investor has the risk tolerance to invest in an offering that involves a high level of risk and that the investor can sustain the loss of some or all of his or her investment.

crowdfunding intermediary must register with the Securities and Exchange Commission (SEC) as a broker or as a funding portal and become a member of a national securities association (FINRA)

The types of securities offered by EquityDoor portal?

Issuers on EquityDoor’s Regulation Crowdfunding platform will be offering debt or equity investments in entities that own commercial or residential real estate. A debt is a promise by a borrower to repay money to a party (the lender, creditor or investor) that has loaned it money, usually with interest. Debtholders have no ownership rights in the issuer. Debt is generally issued for a fixed period of time, at the end of which (the maturity) the issuer must repay the money borrowed. On the other hand, an equity interest in an issuer will represent an ownership interest in the entity and may be in the form of stock of a corporation or a membership interest in a limited liability company. There usually is no time limit of when an investor may receive its investment or any return on investment.

Both types of investments carry risks of investing. Investing in startups and other private companies is highly speculative and should only be done by investors who can bear the complete loss of their investment without any change in their lifestyle. Risks include, but are not limited to an issuer’s: (i) limited operating history, (ii) lack of liquidity or any market for the resale of your investment, (iii) possibility of fraud or misrepresentation, (iv) arbitrary valuation of the company, (v) limited shareholder rights and the possibility of dilution (meaning the reduction in the ownership percentage of a company caused by the issuance of more shares), (vi) inability to generate revenue or raise additional capital to fund operations, and (vii) inability to continue its relationship with EquityDoor or to publish annual reports where an investor obtains the most current financial information about an issuer. An issuer has ongoing reporting requirements to post an annual report no later than 120 days after the end of the fiscal year along with the financial statements of the issuer certified by the principal executive officer of the issuer to be true and complete in all material respects and a description of the financial condition of the issuer, and if an issuer has available financial statements that have either been reviewed or audited by a public accountant that is independent of the issuer, those financial statement must be provided to investors along with certification by the principal executive officer, and specific disclosures. Following completion of an offering conducted through EquityDoor, there may or may not be any ongoing relationship between the issuer and the portal. In addition, under certain circumstances an issuer may cease to publish annual reports and, therefore, an investor may not continually have current financial information about the issuer. In some circumstances issuers are permitted by rule to cease filing annual reports, other issuers may completely fail in their obligation to do so

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