<\/span>How does Small Change work?<\/h4>\n Small Change is a real estate investment crowdfunding platform.\u00a0 Now that\u2019s quite a mouthful, but simply put it means this \u2013 we match investors with developers raising funds for transformative real estate projects, to make better cities everywhere.<\/p>\r\n\r\n
We do this by using some securities regulations which are known as Regulation Crowdfunding (Reg CF) and Regulation D (Reg D), also known as 506(c), sometimes independently, and sometimes together as “side-by-side” offerings.\u00a0 These regulations prescribe how we can help raise funds for developers and the rules we must follow.<\/p>\r\n\r\n
We can also use Regulation A (Reg A) which lets developers raise up to $50 million.<\/p><\/div>\n <\/article>\n <\/span>What does it cost to raise funds on Small Change?<\/h4>\n Our fee structure for Reg CF offerings is as follows:<\/p>\n
\n- $2,500 onboarding fee +<\/li>\n
- 5% of first $1 million raised<\/li>\n
- 4% of second $1 million raised<\/li>\n
- 3% of anything raised thereafter<\/li>\n<\/ul>\n
(Flat fees are charged for Reg D\/506(c) offerings since Small Change is not a broker-dealer and we are not permitted to charge a fee based on funds raised.)<\/p>\n
Our goal is to list your offering quickly and seamlessly.<\/p>\n
\n- We\u2019ll help to prepare a compliant disclosure packet<\/li>\n
- We\u2019ll provide legal templates for your disclosure documents, LLC agreement, investor agreements and more, all crafted to fit the regulations seamlessly<\/li>\n
- We\u2019ll acquire SEC access codes to list your offering<\/li>\n
- We\u2019ll register all paperwork as required with the SEC<\/li>\n
- We\u2019ll set up a bank account ready to accept investor funds<\/li>\n
- We\u2019ll create your online campaign page<\/li>\n
- We\u2019ll guide you through creating appropriate marketing materials<\/li>\n
- We\u2019ll ensure that financial reviews and bad actor reports are completed as required<\/li>\n<\/ul>\n
All investors invest through our fully electronic process, with investment agreements created digitally. They complete required disclosures on risk and more on our platform, all of which information is stored in our database. At the end of the offering we\u2019ll provide you with a list of investors, all of their contact information and investment agreements, and wire you the funds.<\/p>\n
In other words, we\u2019ll guide you through the nuts and bolts of listing an offering, seamlessly.<\/p>\n
Some additional costs you should count on are bad actor and financial reports, a requirement of Reg CF, and of course, marketing.<\/p>\n<\/div>\n <\/article>\n <\/span>Is my project ready to list on Small Change?<\/h4>\n We assess a number of criteria which include:<\/p>\n
\n- That your project fits our mission and scores at least 60% on our Change Index;<\/li>\n
- That you (or your team) has relevant real estate development experience;<\/li>\n
- That you have a well developed business plan;<\/li>\n
- That your offering goal is at least $100,000; and<\/li>\n
- That you have a network of friends, family and neighbors who care about your project and will likely invest.<\/li>\n<\/ul>\n
We\u2019re looking for developers who have a great project idea and have the skills and tenacity to complete it.<\/p>\n
Want to get started?\u00a0 Start the process here<\/a>.<\/p>\nIf your project is not a fit, we\u2019d love to hear from you again, whether you develop your project further or move onto another one.<\/p>\n<\/div>\n <\/article>\n <\/span>What if my project is in an Opportunity Zone?<\/h4>\n Opportunity Zone or not, we need to assess your project based on a variety of criteria – whether it fits our mission and whether the business plan makes sense and whether your project will be ready to break ground soon.\u00a0If you\u2019ve already reviewed the criteria listed in \u201cIs my project ready to list on Small Change\u201d, you can start the process to raise funds here<\/a>.<\/p>\n<\/div>\n <\/article>\n <\/span>What if I’m a first time developer?<\/h4>\n If you believe you have a great project but don’t have the requisite developer experience, you’ll need to add an experienced developer to your team.<\/p>\n<\/div>\n <\/article>\n <\/span>When should I incorporate my company?<\/h4>\n Take note.\u00a0 Our disclosure packet is a suite of templates that are built around a Delaware operating agreement. We’re going to provide this to you free. If you incorporate in another state, or with a different operating agreement, you’ll have more work and additional costs. You’ll need to update our templates to match your operating agreement and we don’t recommend this.<\/p>\n
So wait to incorporate until we’ve had a discussion or two.<\/p>\n<\/div>\n <\/article>\n <\/span>What marketing materials will I need prepare?<\/h4>\n
Small Change is a real estate investment crowdfunding platform.\u00a0 Now that\u2019s quite a mouthful, but simply put it means this \u2013 we match investors with developers raising funds for transformative real estate projects, to make better cities everywhere.<\/p>\r\n\r\n
We do this by using some securities regulations which are known as Regulation Crowdfunding (Reg CF) and Regulation D (Reg D), also known as 506(c), sometimes independently, and sometimes together as “side-by-side” offerings.\u00a0 These regulations prescribe how we can help raise funds for developers and the rules we must follow.<\/p>\r\n\r\n
We can also use Regulation A (Reg A) which lets developers raise up to $50 million.<\/p><\/div>\n <\/article> Our fee structure for Reg CF offerings is as follows:<\/p>\n (Flat fees are charged for Reg D\/506(c) offerings since Small Change is not a broker-dealer and we are not permitted to charge a fee based on funds raised.)<\/p>\n Our goal is to list your offering quickly and seamlessly.<\/p>\n All investors invest through our fully electronic process, with investment agreements created digitally. They complete required disclosures on risk and more on our platform, all of which information is stored in our database. At the end of the offering we\u2019ll provide you with a list of investors, all of their contact information and investment agreements, and wire you the funds.<\/p>\n In other words, we\u2019ll guide you through the nuts and bolts of listing an offering, seamlessly.<\/p>\n Some additional costs you should count on are bad actor and financial reports, a requirement of Reg CF, and of course, marketing.<\/p>\n<\/div>\n <\/article> We assess a number of criteria which include:<\/p>\n We\u2019re looking for developers who have a great project idea and have the skills and tenacity to complete it.<\/p>\n Want to get started?\u00a0 Start the process here<\/a>.<\/p>\n If your project is not a fit, we\u2019d love to hear from you again, whether you develop your project further or move onto another one.<\/p>\n<\/div>\n <\/article> Opportunity Zone or not, we need to assess your project based on a variety of criteria – whether it fits our mission and whether the business plan makes sense and whether your project will be ready to break ground soon.\u00a0If you\u2019ve already reviewed the criteria listed in \u201cIs my project ready to list on Small Change\u201d, you can start the process to raise funds here<\/a>.<\/p>\n<\/div>\n <\/article> If you believe you have a great project but don’t have the requisite developer experience, you’ll need to add an experienced developer to your team.<\/p>\n<\/div>\n <\/article> Take note.\u00a0 Our disclosure packet is a suite of templates that are built around a Delaware operating agreement. We’re going to provide this to you free. If you incorporate in another state, or with a different operating agreement, you’ll have more work and additional costs. You’ll need to update our templates to match your operating agreement and we don’t recommend this.<\/p>\n So wait to incorporate until we’ve had a discussion or two.<\/p>\n<\/div>\n <\/article><\/span>What does it cost to raise funds on Small Change?<\/h4>\n
\n
\n
<\/span>Is my project ready to list on Small Change?<\/h4>\n
\n
<\/span>What if my project is in an Opportunity Zone?<\/h4>\n
<\/span>What if I’m a first time developer?<\/h4>\n
<\/span>When should I incorporate my company?<\/h4>\n
<\/span>What marketing materials will I need prepare?<\/h4>\n