“The first rule of Fight Club is: You do not talk about Fight Club.”
I thought I had a good idea by crowdsourcing knowledge to make better investment decisions. After all, Financial Samurai has a large, financially savvy readership from all over the country and the world. Why not write about a potential investment as part of my due diligence, let thousands of folks scrutinize the investment, and then make an informed decision after further analysis. No brainer right? Wrong.
Apparently, private deals are not to be discussed publicly due to Regulation D, or Reg D, for short. After publishing my post, Crowdsourcing Knowledge For A Commercial Real Estate Investment in Conshohoken, I was asked to take it down and republish the post after the deal was closed. Not wanting to get myself or anybody else in trouble, I obliged. Sorry believers in the 1st amendment!
So why can’t we publicly analyze a private investment? As far as I can tell, the logic is that even though we all can gain access to the RealtyShares platform by signing up and checking out the various real estate offerings, because we aren’t all accredited investors ($200K+ annual income, $1M+ net worth excluding primary residence), the government doesn’t believe it’s fair to let “poorer” people learn or participate in such offerings!
Education is one of the keys to financial freedom. Here I was trying to get smart and help others get smart about a commercial property in Pennsylvania, a state I’m not familiar with, and here the government was in all its wisdom denying us the freedom to learn. I get that people who only make $180,000 a year might not have the wisdom to spend less than they earn compared to those making $201,000 a year. But what I don’t get is why financial education classes aren’t mandatory if the government is so worried about less wealthy people blowing themselves up? Could it be because the government can’t balance its own budget?
Based on government regulation, I can only talk to myself about private investments, A Beautiful Mind style, or to other people who make over $200K or have a net worth of over $1M. Or maybe I can create a private forum where readers have to self-accredit in order to gain access and then charge a high price for entry!
Ah, so THIS is how class warfare starts! Thanks big government.