Frequently Asked Questions
A. Buy The Block is a registered Crowdfunding Intermediary (also known as a “Portal”). Under Title III of the JOBS Act of 2012 (Jumpstart Our Business Startups Act), Portals, are allowed to act as a platform connecting issuers, such as real estate developers seeking to crowd fund any type of property. Block Developers list their projects – which we vett in advance – and investors can choose which one to invest in. Developers who utilize Title III are able to raise up to $1M subject to certain limits for each investor depending on such investor’s annual income or net worth. For more information on Crowdfunding, see https://www.sec.gov/spotlight/crowdfunding.shtml.
A. BlockVestor is an investor who is investing in equity or debt securities in real-estate via Buy The Block.
Limits on BlockVestors:
Anyone can invest in an offering on Buy the Block. However, securities laws limit how much a BlockVestor – even those deemed “accredited investors” – may invest, in a single Block Developer. These limits are calculated during a rolling 12-month period and for a given BlockVestor may not exceed:
- the greater of $2,200 or 5 percent of the annual income or net worth of such BlockVestor, as applicable, if either the annual income or the net worth of the BlockVestor is less than $107,000; and
- 10 percent of the annual income or net worth of such BlockVestor, as applicable, not to exceed a maximum aggregate amount sold of $107,000, if either the annual income or net worth of the BlockVestor is equal to or more than $107,000.
EXAMPLE: Deshawn Jackson earns $100,000 per year and has a net worth of $150,000.
BlockVestor Jackson makes his first Buy The Block investment on November 17, 2017, investing $7,500 in Turnkey Restaurant / Event Center | 7,364 SF. On November 27, 2017, BlockVestor Jackson would like to make his second Buy The Block investment, investing $5,000 in Washington Park Shopping Center. Can he reinvest? Yes, he can invest an additional $5,000 in Washington Park Shopping Center on December 27, 2017, as long as he does not exceed his cap of $15,000 per Block Offer (i.e., property). He can invest another $10,000, if he wanted to the following year on November 17, 2018. $10,000, if he wanted to) on December 1, 2018.
Do you need help creating an account? Please dial 513.299.7941 press option 1 for one of our staff to get started.
A. To become to a BlockVestor you must create an account and you can invest a minimum of $100 for every Block Offer.
A. Block Developer is an entity, such as a corporation or company who acquires property upon which they plan to develop their real estate projects, whether for commercial or residential purposes. Block Developers utilize Buy the Block’s Portal to offer BlockVestors the opportunity to invest in their Block Offering.
Limits for Block Developers:
- A Block Developer may raise only $1.07 million during any rolling 12 month period using Buy The Block.
- This cap applies to affiliates of the issuer as well.
To use Buy The Block, a company must be organized in the U.S. and may not be:
- A public reporting company; or
- An investment company; or
- A blind pool; or
- Disqualified under the “bad actor” rules.
EXAMPLE: Turnkey Restaurant / Event Center | 7,364 SF raises $750,000 using Buy The Block. Washington Park Shopping Center, which is under common control with Turnkey Restaurant / Event Center | 7,364 SF, may raise only $250,000 using Buy The Block during the same 12 month period. But it can raise as much it wants using other exempt offerings like Rule 506(b) or Title II.
A. Block Offering is securities offering of a Block Developer. The underlying project of a Block Offering must include an aspect of a real estate purchase and may be associated with real estate of varying categories, such as office, retail, industrial, multi-family residential and single-family residential.
A. No, absolutely no fees to join as a BlockVestor. Buy The Block charges the issuer (i.e., Block Developer) fees which may come from the offering proceeds.
A. Click on an offer, you’ll see a lot of information right away. For more information, after you click on the project, click on Company Information. There you’ll see even more in-depth information about the offer and the investment.
A. We provide some general educational material. At this point, however, we’re not allowed to provide investment advice. If you’re not sure, you should consult with your own financial and investment advisors.
A. Yes, you should view these as very risky investments, much riskier than an investment in a stock market index fund, for example. The same is true for any direct investment in real estate. You could lose some or all of your money in any of these investments. Neither Buy The Block nor anybody else guarantees your investment.
A. First, review our active offer. When you decide to invest, click “Invest Now” and we will guide you through the process. We’ll have you review important information about the offer, we’ll ask you to sign our Investment Agreement, and then – and only then – we’ll ask you to pay for your investment.