Crowdfunding

Raising capital in the real estate context, whether through large-scale investment or by smaller, more focused means, can be an intricate, time-consuming and expensive process. Developers and others raising capital need to be mindful of various considerations when operating in this arena, depending on whether their investors are pension funds, private investment vehicles or individual investors.

Up until recently, investments in non-prospectus based real estate private equity vehicles by individuals was based on the use of the accredited investor exemption under the Securities Act (Ontario). The accredited investor exemption permits the issuance of securities by an issuer to an accredited investor without the requirement for a prospectus. There are various tests for what constitutes an accredited investor. Four of the most common are (i) an individual who, either alone or with a spouse, owns financial assets worth more than $1,000,000 before taxes, but net of related