Group items tagged

fundraising efforts

swimmable water

a feasibility study to assess 10 specific locations across the city where the eventual pool might live.

Archie Lee Coates

We're analyzing the technical and structural feasibility of various sites in the harbor to understand where exactly is the best place for + POOL. After this testing, we'll be finishing site-specific final designs so we can hand them off to the city, apply for permits, build this thing and finally all swim in the river together.

+Pool has some environmental lawyers on the case, pro bon

Through interests, pools, and activities on our site, we’re able to connect people in a very strong way, around the interests that actually matter to them.

The Facebook connection is important for a number of reasons. First, it allows us to validate a member’s age (must be over 18 to use the site). Second, it allows us to explore and map around mutual friends, which is important when fostering new relationships. And third, it makes the profile creation process easier by pulling photos and information.

The goal with At The Pool is to bridge the online-offline gap and get people meeting up in the real world.

allowed tax-deferred exchanges for "tenancy in common" or "TIC" property transactions. Now 1031 exchanges were permitted not just for single-owner properties but also for multiowner, professionally managed real estate assets.

Between 2003 and 2008, Section 1031 investors poured more than $12.5 billion into various multiowner TIC properties ranging from shopping centers, office buildings, industrial buildings, apartments, and free-standing assets

With no available liquidity to fund like-kind property purchases, the 1031 market came to a screeching halt.

Delaware Statutory Trusts

DST deals are simpler for investors to understand, more nimble at critical life-cycle junctures, better suited to satisfy investor diversification needs, and, perhaps most importantly when it comes to putting a deal together, much easier for lenders to trust.

Centralized Management: In contrast to TIC, the DST structure puts all decision making in the hands of a trustee, centralizing the decision-making process. Furthermore, DSTs protect individual investors from personal liability and reduce deal documentation to a single agreement -- a trust agreement.

Smaller Investment Minimums: Although a TIC deal is limited to 35 investors, DST programs have no such mandated ceiling, with the only practical limit being that anything more than 2,000 investors triggers Securities and Exchange Commision reporting under the 2012 JOBS Act. As a result, TIC deals often have large minimum investments, whereas investors can buy into DST programs with smaller outlays.

Diversified Investments: Although TICs are constrained in the value of real estate that can be purchased by up to 35 investors, the pool of assets in a DST structure can be much larger. With more money available for investment, DSTs can afford to diversify assets.

Summing Up the DST Benefits: Simply put, an investor looking to do a like-kind property exchange gets a wealth of benefits under the DST structure. He enjoys the traditional tax deferral allowed under 1031 exchanges. Additionally, by executing a single trust document and for a comparatively small investment, he owns a piece of a diversified portfolio of real estate managed by a professional. And he is protected from personal liability.

For one thing, it mandates the unanimous consent of all owners for decisions such as property sales, refinancing and leases -- a management headache when there are many investors.

Similar to a public REIT, assets in a DST vehicle are not aggregated by blind pool methodology as they are in a non-listed REIT, but instead are specifically identified by a sponsor, and disclosed to all prospective investors.

“30 under 30” in energy by Forbes.

Their company started slowly, garnering interest-free investments from individuals to fund solar installations on five community projects. They range from homes on a Navajo reservation in Arizona to the Asian Resource Center in Oakland. All are smallish installations

I invested $100 in the Asian Resource Center installation in 2011, in equal parts to support the fledgling company as well as a social-service organization in my hometown

Those first projects were funded using a zero-interest investment model similar to Kiva, where investors get their principal back over time but no interest. This allowed Mosaic to avoid federal regulation and to go to market, learn the business, get feedback, and show traction for the idea. At the same time, it launched into the process of registering with the Securities and Exchange Commission, the federal agency that governs investment firms.

More recently, the company started raising money for projects in which it would pay interest. It can do this while waiting for SEC approval thanks to something called Regulation D, which exempts from regulatory oversight the offer and sale of up to $1 million of securities in a 12-month period.

A small group of investors was invited to put in as little as $25 and have been promised a return of 6.38 percent over five years.

The project is projected to save the youth center more than $160,000 through reduced electricity costs.

I invested $200 in this project as part of Mosaic’s private “beta” investment round

“As an asset class, the default rates on solar leases and power purchase agreements are extremely low,”

If I want, I can reinvest the earned interest and repaid principal in other Mosaic projects with the click of a button.

nlike investing in CDs, there are risks in Mosaic’s projects. The solar-installation customer could default on its monthly payments. The solar anels or installation could be faulty, tying the project up with repairs, negotiations, or worse.

There are a lot of unknowns: the number of people willing to invest sums, small or large, in energy projects offered by a start-up with a very short track record; the cost of attracting and servicing these investors; the number of available investment-quality energy projects; the actual performance of those projects during the life of the investments;

Together with a $2 million grant from the Department of Energy

All told, 51 investors ponied up $40,000 for the 106-panel installation; the whole project got funded in just six days. I’ve already received my first interest payment.

It’s a bold idea: Raise money from the masses in order to bring solar to the masses, providing value to everyone along the way.

Having proved the concept, Parish and Rosen are now ready to kick things into high gear, throwing open the doors to all qualified investors.

“The economics of solar have begun to make sense in more places, and online investing and peer-to-peer finance are becoming widespread. Those are the two big forces that we’re a part of.”

I asked him why no one had done this before. “It’s a really difficult set of skills and competencies that you need to pull together on one team to make this business model work,” he explained. “You need the securities law expertise. You need the solar project finance expertise. You need the technology expertise to build the online investment platform, and you need the marketing expertise to get people to invest in the projects.”

For each project, Mosaic provides the underwriting and due diligence. “If we like it and it meets our investment committee’s criteria, we make a loan offer to the project developer or the project owner, and negotiate a loan to them.” Mosaic takes a servicing fee (the difference between the interest rate charged the developer and the rate pays investors) and an origination fee of between 3 and 5 percent of the loan, which the developer pays. Mosaic doesn’t do the installation itself — it contracts that out.

Clearly, not yet a pathway to riches. What’s needed is volume.

“Our goal is to be doing billions of dollars of investments a year in clean-energy projects,

“We have already had a lot of developers coming to us," he says. "We’re interested in offering high-quality, clean-energy projects for people to invest in.

We believe clean energy is good in and of itself and is a great asset class for investment. So we’re looking at all kinds of projects.”

It’s not just solar. Parish and Rosen are looking at a broader category of projects to finance — what they call clean-energy infrastructure. That includes other forms energy as well as energy-efficiency projects and electric-vehicle infrastructure.

, the company aims to scale its offerings, including geographically, to get millions of Americans involved with funding clean-energy projects.

However it plays out, it’s a compelling and potentially disruptive business model. Allowing smaller investors to participate in clean-energy investments is an exciting possibility. And the relatively predictable returns of solar

can make these investments a safer bet than many traditional Wall Street investment vehicles.

And not for just small guys. Imagine if larger mission-driven investors, including pension funds and university endowments, started pouring money into Mosaic. The expanding investment pools could rapidly accelerate the growth of renewable energy and efficiency projects in the marketplace.

“I think a lot of people are just excited about the model,” says Parish, “and have been wanting to find a place that they can feel good about investing, that they can also generate pretty good yield from. And that’s what we’re trying to do.”

Parish makes a point: Some of this is an exercise in feel-good investing. But that’s nontrivial: How many of your investments do you feel good about? Even some of the so-called socially responsible funds hold stocks of fossil-fuel companies and other corporate nasties in their portfolios. If the nascent trend of disinvestment in fossil-fuel companies takes off among climate-minded investors, where will they next put their money? If Parish and Rosen have their way, there will be a new generation of cleaner investment alternatives to be found — perhaps, like me, right in your own community.