Ask HN: Markets.com launches new investment site...but is it legal? | Hacker News Reader

Ask HN: Markets.com launches new investment site...but is it legal?

markets.com

6 pointskeltecp1110 comments

I can't help but believe that in that list of investors and execs that someone decided to call an attorney to sort that out. I think the rules for real estate investment are different than being equity in a corporation. I mean if timeshares are legal why not this?

A "security" by law is any offer promising to bring you money later in exchange of your money now and through no participation of your own. Public solicitation thereof is illegal under 1933 Securities Act. This law was intended to regulate exactly things like these, where individual small-time investors are presented with opaque package promising riches.

Timeshares you are supposed to live in, which make is not a security.

Not a legal advice.

I realize there is a difference but it seems like the people promising homeowners riches for just living in their house are no better than any scammer promising riches later. I suggested the comparison just to point out that this is a real estate transaction like any other from one point of view.

I can't want to invest in the "Fedex Office Bulding".

I love the 2-and-50 fee structure. Sign me up.

I agree. Regardless of whether this is legal, it's a horrible investment.

Wow, that's pretty cool! Funny, though, the first thing I noticed: There are a TON of small issues in the website design that should be fixed (at least in FF3 on mac), and the poor attention to detail in the website makes me skeptical of the company as a whole. Does anyone here have firsthand experience with these folks?

I know the founders... it is a credible site. They have a long history of different ventures based off of this domain name, I think this is a great concept... but I am just curious about it's legality.

SEC violations scream all over this place in my opinion, but I'm not sure.

Last I remember and this has been over a decade ago (so take it with a grain of salt) you must have a securities license to run a Real Estate Investment Trust with more than 5 principal investors. As well most states will also require a Real Estate license or State bar attorney certification. I would say that these guys would need to be associated with a brokerage house, if the law is still the same, given that they will probably have more than 5 investors per property.

The returns are suspiciously good ... I wouldnt invest in property on such an impersonal basis either - not in the current climate.

But... seems people are doing ;)

Reply on news.ycombinator.com