Re:FundersClub Reports Unrealized Net IRR of 41.2%
by ChuckMcM on Tuesday February 18, 2014 @01:19PM
(#7259871)
Well the accredited investor rules really are there to protect people from getting scammed. That rule just accepts that a material number of the people asking for investment are going to be unscrupulous bastards who are just out to take their "investors" money. This way they take it away from people who can afford to lose it, rather than people who cannot. There are avenues for non-accredited investors to invest in the market in which the SEC has put a lot of constraints on the people trying to you pitch you such that if they are really crooks you can sue them and try to get your money back. Sometimes even that fails, as in the Madoff case, but they try.
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Re:FundersClub Reports Unrealized Net IRR of 41.2%
by lectrick on Tuesday February 18, 2014 @01:58PM
(#7260202)
> Well the accredited investor rules really are there to protect people from getting scammed.
This is a line of bullshit. If the law allowed it, you could easily set up a site like LendingClub.com which distributed the risk over many many things, mitigating it quite a bit, and allowing "smaller" players to take advantage of it.
One could do the same thing with real estate... If the law allowed it.
The laws against capital investment by anyone who is not a millionaire IS what is making the rich richer.
Re:FundersClub Reports Unrealized Net IRR of 41.2%
by ChuckMcM on Tuesday February 18, 2014 @02:20PM
(#7260387)
Perhaps we are talking about different things. There are no "laws against capital investment by anyone", if you want to invest go down to pretty much any bank or financial institution and open an investment account. Go out and buy shares or bonds and have fun. Back in the dot.com days people did this all day long and got the notion of a 'day trader' was born.
The laws that are in place are around liability and more importantly personal liability in the event that the investment goes south. If you are soliciting investment from accredited investors you can put in place some limits on your liability with respect to that investment, I do not believe that is the case if they are not accredited.
Re:FundersClub Reports Unrealized Net IRR of 41.2%
by joshhart on Tuesday February 18, 2014 @02:44PM
(#7260560)
We have this already - it's called the stock market and bond market. If you want to distribute the risk of investing in real estate, I suggest taking a look at REITs, real-estate investment trusts. They are companies investing in real estate required to pay out a certain % of profit in dividends.