Note that the information presented here is for informational purposes only and should not be used as the basis for financial or legal advice. Always consult with an experienced attorney prior to making any offering of securities. Statements made here have not been reviewed or approved by any regulatory agency.
Collective is the first fractional equity platform that enables investors to earn compelling equity returns on the construction of new single-family homes. Investors easily invest in new homes and profit from their sale.
Collective enables a group of investors (accredited investors or qualifying non-U.S. residents/citizens) to come together and make fractional investments in the construction of new homes. It offers both a listing site for projects seeking investment and on-chain tools for crypto investment and project equity accounting and management.
Collective's project listing and equity management tools empower Project Sponsors to offer new home construction investment opportunities to accredited investors and qualifying non-U.S. resident/citizen investors.
Collective features investment opportunities offered and managed by Project Sponsors, independent businesses that specialize in homebuilding, project management, and home sales. Investors transact with Project Sponsors directly. Project Sponsors list projects available for investment, invest alongside their investors, manage those projects on behalf of the investor pool, sell the property, and distribute gains (or losses) to investors.
Project Sponsors list projects available for investment, and they manage those projects on behalf of the investor pool for a fee. When homes are completed and sold, investors receive their pro-rata share of the proceeds (after the Project Sponsor fee).
Project Sponsors may require a minimum investment. You will find that information listed alongside other project details on each Project page.
Investments featured on the Collective platform are available to (i) accredited investors as defined by federal law and (ii) those who are qualifying non-U.S. resident and non-U.S. citizen investors.
Under federal guidelines, as an individual investor, you must satisfy at least one of the below requirements.
- Individual income of $200,000 (or $300,000 if filing jointly); 2. Net worth of $1,000,000 (individually or jointly); or 3. Currently hold one of the following professional certifications: General Securities Representative license (Series 7), Private Securities Offerings Representative license (Series 82), or Investment Adviser Representative license (Series 65).
You may also qualify as a business. For more information on these qualifications, please click here.
The easiest way to verify your accreditation might be simply to provide a letter from your accountant or legal counsel stating as much.
Otherwise, to demonstrate income qualification, you may provide:
- Tax filings or pay stubs; - A letter from an accountant or employer confirming your actual and expected annual income; or
- IRS Forms like W-2s, 1040s, 1099s, K-1s or other tax documentation that report income.
To demonstrate net worth qualification, you may provide documentation revealing all of your asset and liability information to accurately calculate net worth. This may include:
- Credit report
- IRS forms
- Consumer credit report listing all liabilities outstanding
- Deeds or other evidence of ownership for real estate holdings
- Third-party valuation of property holdings
- Value of private company securities holdings
- Proof of vehicle ownership
Please upload a written confirmation from your business’ personal attorney, certified public accountant, broker-dealer or registered investment adviser stating that within the prior three months, he or she has determined, after reasonable investigation that your business meets the criteria of “accredited investor” as defined in Rule 501(a) of Regulation D of the Securities Act of 1933, as amended (click here to view a sample letter).
Unless otherwise specified within the project listing, each project is managed through a unique Delaware LLC. That LLC owns the project’s properties, accepts investments, manages the construction and sale process, and makes distributions to its investors.
Investors purchase a membership interest in the LLC when they invest in a project. The Operating Agreement for the LLC, provided to you for signature when you invest, details the terms under which the Project Sponsor manages the project and the fees it earns by doing so. It also defines how investors earn their pro-rata return upon sale of the homes (i.e. after costs, expenses and fees). Unless otherwise specified by the Project Sponsor, projects offered are all equity; no debt.
Collective offers two ways for you to fund your investments:
- Wire or ACH payment from your bank account to the Project LLC’s bank account.
- Send digital $USDC on Polygon to the Project LLC’s crypto wallet.
You will be prompted to select your investment method when you choose to invest in a Project.
Upon sale of a property, the Project Sponsor distributes profits to investors pro rata. Additional information is contained in the Operating Agreement for each Project, which you will be able to review before investing.
If you are a U.S. accredited investor, Project Sponsors will issue you a K1 reflecting your pro rata share of the Delaware LLC’s tax liability and will distribute the funds required to meet that liability.
If you are a qualifying non-U.S. citizen/resident investor, Project Sponsors are obliged by federal law to withhold your tax liability on any profits and to forward payment directly to the IRS on your behalf. Project Sponsors will distribute your net post-tax earnings to you.
Built on state-of-the-art blockchain infrastructure, Rigor is the new trust layer for new home construction finance. Rigor enables investors to finance home construction projects directly, simplifies payments administration to the supply chain and brings transparency to capital flows. Rigor enables homebuilders to find the capital they need to build more homes, from digital asset markets.
Rigor’s financial controls introduce new capital efficiencies to a historically fraught asset class in which capital flows lag workflows dramatically; the software assures that contractors and vendors can be paid automatically, directly and instantly, eliminating the waste, fraud, and inefficiencies of today’s traditionally opaque payment practices. Collective’s Project Sponsors may leverage Rigor to manage capital flows and workflows.
- Visit www.homeconstructioncollective.com
- Sign in using your email
- Browse projects and associated properties open for investment
- Complete KYC verification and verify your eligibility as an accredited or qualifying non-U.S. resident/citizen investor
- Select a project
- Sign project-specific legal agreement
- Invest via USDC or USD
- Once the project is fully funded, construction will begin
- As builds progress, the Project Sponsor will monitor progress, municipal inspections, and lien releases
- Once the properties in the project have been sold, profits will be distributed pro-rata
- Project Sponsor will distribute K1s
In the event that the project does not raise its goal amount, Project Sponsors will return funds to investors at the earliest possible date.
Unless otherwise specified by a Project Sponsor, no; Collective projects are financed solely with equity capital. On the sale of the home, all investors are paid out, pro rata.
No; Collective projects are financed solely with equity capital. On the sale of the home, all investors are paid out, pro rata.
Interests in projects listed on Collective are currently non-transferable.
The Project Sponsor makes all substantive determinations about its projects. As an investor alongside you, the Project Sponsor takes this responsibility seriously. The Project Sponsor will make the determination of which course of action is optimal based on market conditions when projects are completed and ready for sale.
Please refer to the Project details page for any Project to learn about its specific fee structure with its Project Sponsor.
At present, the Collective platform supports one investment per Project per investor. It does not support multiple investments in the same Project. You are able to invest across multiple Projects.
Please contact email@example.com if you would like to invest more in a particular Project.
No. Projects can only offer securities pursuant to an exemption from the registration requirements of the Securities Act of 1933, as amended (The Securities Act).
Projects on Collective are responsible for ensuring their own offerings comply with relevant laws and regulations.
Typically in the U.S., Collective projects use Rule 506(c) of Regulation D of the Securities Act. Rule 506(c) allows issuers to broadly solicit and advertise an offering to the public, including through the use of online platforms, social media, and other forms of mass communication. However, there are certain requirements that must be met in order to qualify for this exemption.
First, all purchasers in the offering must be accredited investors, which means they meet certain income or net worth requirements. Second, the issuer must take reasonable steps to verify that the purchasers are accredited investors, such as by reviewing tax returns or bank statements. Third, certain other conditions in Regulation D must be satisfied, such as the requirement to file Form D with the SEC.
Collective hires third-party KYC/AML screeners and accreditation verifiers to ensure that U.S. investors using the platform meet the suitability requirements of Rule 506(c). Individual projects are responsible for adhering to other conditions in Regulation, including filing a Form D and complying with state-specific fee requirements and other laws.
No, individual projects are responsible for offering and selling their own securities, for compliance with relevant laws and regulations, and for maintaining the accuracy of the information presented by such projects. Collective does not verify information provided by projects using this platform and makes no assurances as to the completeness or accuracy of any such information. All investors are encouraged to seek independent advice from a registered investment adviser.
Not at this time.
This determination is made on a case-by-case basis, and depends heavily upon the investor’s jurisdiction. We maintain a list of prohibited countries and jurisdictions, including countries subject to U.S. and international sanctions and export controls. The issuer must take into account various other factors such as the citizenship and residency of the investor, the rules and regulations applicable to such investor, such investor's ability to comply with KYC/AML screenings, and whether such investor is a qualified institutional buyer.
List of jurisdictions/countries whose citizens are prohibited by law from participating in the offerings:
- North Korea
- The following regions of Ukraine: Crimea, Donetsk, and Luhansk
- Burma (Myanmar)
- Central Africa Republic
- Hong Kong