Jim Hitt, CEO of American IRA-a national self-directed IRA provider, shares information regarding the use of the Crowdfunding exemption in the JOBS Act. The North American Securities Administrators Association (NASAA) have issued an important warning investors should be aware of in relation to crowdfunding.
Here is the NASAA warning:
The NASAA is concerned with the threat of potential con artists, claiming to be crowdfunding brokers or to represent online portals through which future deals must be conducted. “Be aware of unscrupulous persons offering to take fees from you now to help you raise capital over the Internet,” the alert reads. The offers could be a scam because the law has not been implemented yet, said regulators.
For those unfamiliar with crowdfunding, here’s a quick definition: According to accountingtoday.com, “Crowdfunding is the ability for a large group of people to band together and make small investments that collectively are enough to fund a startup company.”
Jim Hitt says, “A self-directed IRA can be used as a funding source for crowdfunding.”
Most crowdfunding is done via the internet via websites such as Kickstarter, Circleup, and Fundable. This is an interesting funding approach that has launched many start up companies of varying success levels. The key with this as with any investment is for people to do their due diligence before investing their hard earned money.
Jim Hitt concludes, “The crowdfunding law has not been implemented yet and looks as though it is a long way off with some experts estimating April 2013 as the earliest date. I can’t stress enough to make sure you do your due diligence and consult with experts before participating in any crowdfunding opportunities.”
American IRA, LLC was established in 2004 by James C. Hitt in Asheville, NC.
The mission of American IRA is to provide the highest level of customer service in the self-directed retirement industry. Mr. Hitt and his team have grown the company to over $250 million in assets under administration by educating the public that their self-directed IRA account can invest in a variety of assets such as real estate, private lending, limited liability companies, precious metals and much more!
To learn more about American IRA, LLC and self-directed IRAs/self-directed Solo 401(k)s, please contact our office at 1-866-7500-IRA(472).
As a self-directed IRA administrator they are a neutral third party. They do not make any recommendations to any person or entity associated with investments of any type (including financial representatives, investment promoters or companies, or employees, agents or representatives associated with these firms ). They are not responsible for and are not bound by any statements, representations, warranties or agreements made by any such person or entity and do not provide any recommendation on the quality profitability or reputability of any investment, individual or company. The term “they” refers to American IRA, located in Asheville, NC.