Frequently Asked Questions
A. Yes, real estate market can be unpredictable, you should be prepared for the all ups and downs.
Q. How should I choose an offer on Buy the Block?
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.
Q. How do I learn more about the offers on Buy The Block?
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.
Q. Can I change my mind after investing?
A. If you have invested in a project, you’ll have until 48 hours before the offering closes to request a refund.
Q. What is the process for investing in an offer?
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.
Q. Is investing in offers risky?
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.
Q. Are there fees to join?
A. No, absolutely no fees to join.
Q. Why should I consider investing in real estate?
A. Allocating some portion of your portfolio to a direct investment in real estate may provide you with a reasonably predictable and stable level of current income from the investment; the opportunity for capital appreciation; and diversification of your portfolio; and may also provide you with the knowledge that you are helping to improve communities. But you should view these as very risky investments, much riskier than an investment in a stock market index fund.
Q. What is Buy The Block and how does it work?
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. 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.
Q. What is a BlockVestor
A. BlockVestor is an investor who are investing in equity or debt securities in real-estate via Buy The Block.
Limits on BlockVestors:
Generally, 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 $2,000 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 $100,000; and
- 10 percent of the annual income or net worth of such BlockVestor, as applicable, not to exceed a maximum aggregate amount sold of $100,000, if either the annual income or net worth of the BlockVestor is equal to or more than $100,000.
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 invest again? 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.