Buy the Block
Buy the Block is a niche Reg CF real estate investment crowdfunding platform offering investments with a focus on helping black communities. They are an SEC-registered Title III Funding Portal, but have not offered any Reg CF investments to date.
- Website: https://buytheblock.com
- Investment Types: Real Estate
- Security Types: Debt and Equity
- Minimum Investment: 100
- Open to all investors
Buy the Block fee structure
Buy the Block does not charge any fees directly to investors, but like most Title III Funding Portal, charges issuers a percentage of the amount raised (in their case, 6%). Buy The Block also charges a range of additional fees that are on the hefty side, adding up to several thousands of dollars charged to issuers (thereby reducing the amount of capital ultimately available for the project).
Regulatory framework and due diligence expectations
Buy the Block is an SEC registered Title III Funding Portal, which means they are subject to a range of rules and obligations around investor education and due diligence. All companies offering investments on [field platform_name] will have been a minimum of background checks of key officers and owners. Prospective investors also have access to online forums to talk with other investors, and an online channel for asking questions of the company raising funds (and viewing answers of prior questions from others).
You may be able to invest in Buy the Block using a Self-Directed IRA or 401K. To learn more about using a Self-Directed retirement account for alternative investments, visit our friends at Rocket Dollar.