1. What is the difference between a Reg D 506 c and a 506 b offering? Reg D 506 b is the traditional method to raise capital . You can only approach friends, family and existing clients. You cannot generally solicit your offerings and you are limited to 35 investors for any singular deal. Whereas, with 506 c, you can generally solicit anyone breathing and have unlimited investors. The caveat however is the investors must all be verified as being accredited.

2. What are the benchmarks to be accredited? An individual either alone or with a spouse owns financial assets exceeding $1,000,000 net of liabilities but before taxes or an individual whose net income before taxes exceeds $200,000 in each of the 2 most recent calendar years or $300,000 combined with a spouse and reasonably expects to exceed that net income level in the current year.

3. Do we still need a PPM if we do a Reg D 506 c offering? Absolutely not. As long as you offer enough factual information about your offering for an “accredited” investor to make a prudent business decision to invest, the traditional Private Placement Memorandum is no longer necessary. This alone saves you $15,000+/- and 6 weeks of waiting for each and every offering.

4. What about complicated and expensive documents like operating and subscription agreements? Do I still need them? Yes, but eVest provides you with its document templates crafted by its securities attorneys free of charge.

5. What if I have 3 separate offerings at the same time? Under a single SaaS (software as a service) eVest license you can host unlimited deals on your branded offering page at any given time. You also get unlimited PPM data rooms which host your deal information required to review before investing and landing pages for digital marketing.

6. Are we able to upload videos to your platform? Absolutely. In fact we offer a video tutorial describing step-by-step on how to produce your 1st video. We will then edit, brand it and add text and music. All free of charge.

7. Can investors use their self-directed IRA to invest in my deal? Yes. Investors can create numerous profiles allowing for a myriad of entities to invest through.

8. How hard is it to upload information and create our PPM data room? We have provided for zero technical challenges for our clients. Your eVest customer service rep will do all the uploading for you and assist with any questions or issues as they arise. You have 1 point person and are not stuck in any queue waiting for the next available stranger to assist you.

9. If I have a list of investors, can I upload onto your platform? Once you become an eVest client, you will have access to your “Community”. This is where you can upload your investors via excel or CSV. As new investors register on your site, they will populate onto your Community. From there, using filters, you can distribute documents to groups simultaneously.

10. If an investor invests in my deal on your Marketplace (www.evestmarketplace.com), is there a cost to me? This is a very popular and powerful feature eVest offers its clients free of charge. eVest markets its Marketplace to thousands of prospective investors monthly. Your success is eVests’ success.


About the Author

Dan Summers

Dan is the Founder and CEO of eVest Technology.

During his 30-plus-year career in real estate, Summers has been instrumental in some of the nation’s largest real estate transactions. Having spent decades interfacing with Goldman Sachs, Lehman Brothers, Deutsche Bank, CBS, Westinghouse and Bank of Boston, among others, Summers has built a national reputation for integrity, honesty and transparency.

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