’s Release Postponed – Developers Warn Real Estate Crowfunding Investors


English: A frame from a screencast from the US...
English: A frame from a screencast from the US House Financial Committee full committee hearing “An Examination of the Extraordinary Efforts by the Federal Reserve Bank to Provide Liquidity in the Current Financial Crisis which took place Tuesday, February 10, 2009, 1:00pm, 2128 Rayburn House Office Building. The frame shows Chairmen Ben Bernanke responding to a question posited by John E. Sweeney Full Committee (Photo credit: Wikipedia)

We’ve decided to hold of the launch of this real estate crowdfunding platform due to inherent legal difficulties and risks involved in crowdfunding real estate. We will revisit this later after the SEC rulings roll out and the kinks are worked out on existing sites; however, we see significant investment risk and an unacceptable (to us) litigation risk in all existing real estate crowdfunding platforms, at least a great deal more than we are willing to expose our client’s investment capital to. We will launch The Aria Group’s investment portal for accredited investors next week. It is unknown at this time if we will release the crowdfunding portal of non-accredited investors. We wish to err to the side of caution and not run into the already crowded space with anything less than our ability to offer investors a fully secure, predictable and litigation proof investment vehicle. Although recent market indicators predict a rebounding market yesterday’s meeting of The Federal Reserve’s Open Market Committee posed some significant unanswered questions that we at CrowdPad would like to see resolved which won’t happen until sometime after Fed Chairman Bernanke‘s successor takes the reins at the end of January 2014. We feel that the loss of traction by waiting until February will be far outweighed by our ability to continue to monitor existing real estate crowdfunding platform performance following the SEC’s release of the new regulations for several months and also allowing for the transition to Bernake’s successor and the release and analysis of the upcoming holiday shopping indicators.

We will instead opening our closed investment portal for accredited investors only within the next few weeks on our parent corp’s website at The Aria Group. We take the integrity and security of our client’s investments very seriously and simply do not wish to get caught up in the current frenzy to rush to market an investment platform which we see as having a higher than acceptable risk factor for our clients.ARIALogoSpec1


The Aria Group, Inc. Launches Real Estate Investment Service

ImageAvailable to Passive Investors Nationwide

Newport Beach, California (PRWEB) August 13, 2013— THE ARIA GROUP has served Real Estate Investor clients for many years and the addition of the CROWDpad LLC Real Estate Investment Program is a natural progression.  Now, in addition to offering superior Real Estate legal, transaction and compliance services, THE ARIA GROUP will also provide clients with Passive Real Estate Investment Opportunities nationwide.


“Our vision of making real estate investing simple, providing investors with more transparent access to passive investments, and reducing check sizes way below

$50k or $100k for a single investment has become a reality.”-Paulina Ghaneian, CEO, The Aria Group LLC.


Passive real estate investing can be incredibly quick. Investors perform due diligence, sign legal paperwork online and transfer funds almost immediately. THE ARIA GROUP has properties secured with existing tenants where there is existing cash-flow. Investors begin receiving dividends month one.

THE ARIA GROUP is the premier full-service, mortgage investigation and discovery firm in the United   States specializing exclusively in mortgage origination, securitization and assignment compliance and offering a full suite of services to support Realtors, Law Firms and Real Estate Investors. Our professionals have years of experience in finance and mortgage banking, consisting of subject matter experts, attorneys with considerable compliance experience, former regulators and former S.E.C. compliance executives who have created comprehensive auditing, discovery and document systems designed to yield the quickest  and most favorable results to our Investor clients and the Realtors and Law Firms that represent them.

In the past, HOA foreclosures were relatively rare since the property being foreclosed upon by the HOA usually had equity and an owner would cure the default of the lien prior to letting the home go to foreclosure by the HOA.

Since the housing crisis began, HOAs have found themselves in a difficult situation in regards to foreclosures because most of the homes where the owner let the HOA foreclose didn’t have any equity in them because the owner owed more money on the home than it was worth. So if the HOA foreclosed they would be the owner (in most cases) of a property subject to a first deed of trust that owed more money than the HOA could sell the property for leaving the HOA now upside down in the property with no way to recoup their losses.

However, THE ARIA GROUP has recently found that purchasing HOA past due amounts (arrearages) directly from the Associations, even if there is more money owed on the property than it is worth is a good investment since the lenders who are owed the money on the first do not value time. Therefore, ARIA investors, or potential owner/occupants, can buy occupancy or control of a property and either rent the property out or live in the property while the lender goes through the extremely slow process of a bank foreclosure.

Many times, ARIA will work with lenders to come to some sort of an agreement for a purchase and even if they cannot come to an agreement the investor recoups their money plus a large profit waiting for the bank to finish their foreclosure process. THE ARIA GROUP has been successful in delaying foreclosure for clients for years in most cases.

Remember, ARIA is not obligated to pay the loan that is owed against the property nor is there any negative ramifications to our investor’s credit.

Can HOA Foreclose Your Condo?

Homeowner associations, or HOAs, have the legal right to foreclose on a condominium unit in California. These associations are generally composed of a board of members that oversee all the matters affecting the condominiums and surrounding property. An HOA can only foreclose, or use legal proceedings and regulations, to take back ownership of the unit if the unit owner is delinquent on any fees or assessments the association is allowed to charge according to the governing documents the HOA is using.

General Notice to Owners

All HOAs in California are required to provide the owners of each unit in the condominium documentation, annually, of operating, maintenance and repair expenses, according to section 1365 of the California code. These reports must also include a summary of the procedures the association uses when collecting past due assessments or fees. If the HOA does use foreclosure proceedings in cases of overdue payments, the policies the association uses for informing the condominium owner of the impending legal action and a general outline of the foreclosure process has to be noted within these papers.

Fees and Assessments

HOAs are allowed to collect maintenance fees and special assessments for services used to maintain the condominium buildings and common elements, or areas that all unit owners are allowed to use, such as a recreation center. Per 1366(a) of the California code, these assessments cannot be changed after the beginning of the fiscal year without the approval of at least 50 percent of the members of the condominium. The assessments cannot increase more than 20 percent each fiscal year. Assessments and fees are considered delinquent when more than 15 days past due under section 2924b of the California code, unless the written policies of the HOA allow for more time. Once the assessments are delinquent, the association can start foreclosure proceedings.


According to section 1367.4(b) of the California code, HOAs can use either judicial or non judicial foreclosure in California. Judicial foreclosure involves the associations taking the unit owner to court and obtaining a judgment of foreclosure, which can result in the public auction of the unit. Non judicial foreclosures are done without court action. The association must mail notice to the unit owner and follow all state laws. Once the period for the unit owner to object to the action has passed, which must be a minimum of three months from the date of the notice, the HOA can sell the unit at auction.

Requirements and Limitations

HOAs can only initiate foreclosure proceedings if the past-due assessments total at least $1,800 before any interest, late penalties or attorney fees are included, or if the fees are more than 12 months overdue under 1367.4 (b) of the California code. The association cannot levy any assessment that is more than the amount necessary for the service to which the fee applies. Thirty days prior to starting the foreclosure process, the HOA must send the unit owner an itemized statement of the past-due fees, the method of calculation used to determine the unit owners charges and an overview of the lien enforcement process by certified mail.

Rights of the Owner

The unit owner has the right to request and receive a meeting with the board of individuals who govern the association upon notice of the action to foreclose per section 1367.4(b)(1) of the California code. The unit owner can also dispute the assessments. This process is initiated when the owner sends a written letter to the HOA, indicating that he is disputing the amount being collected. If HOA will not lessen the amount of money owed after meeting, the unit owner can request that a third party review the matter, and the association is required to participate in this mediation under California law. The unit owner can also request that the HOA consider a repayment plan to satisfy outstanding assessments.

Does an HOA Foreclosure Deed Supersede a First Mortgage Deed?

A community establishes a homeowners association (HOA) to govern what can and can’t be done in the community. In addition, an HOA determines the rules for community use of commonly shared or owned property. If you have an HOA and fail to keep up with dues you owe to it, the HOA can foreclose on your property. When an HOA successfully forecloses your property, it becomes the new owner responsible for any mortgage payments.

HOA Dues

If you belong to a homeowners association, you have a duty to pay your HOA dues. In turn, homeowners associations have a duty to collect member dues. HOAs are accountable to all members of the community served by the HOA. Homeowners association dues go to pay for things like grounds upkeep and community pools. In certain cases, HOAs are also very quick to take action if even one payment is missed.

HOA Foreclosure

Where allowed, homeowners associations typically seek foreclosure through non-judicial means. California,  for example, allows HOAs to foreclosure non-judicially, or without the courts, for unpaid dues. However, California HOAs can’t foreclose until the debt for the dues reaches $1,800 or the debt is at least 12 months old. In most states, including California, when an HOA forecloses a property, it becomes the new property owner. Because the HOA is the legal property owner, it’s also responsible for any mortgage payments.

HOA Deeds

When a homeowners association successfully forecloses a property, it receives a deed that still contains all other liens. In order for an HOA to sell off a property it foreclosed, it would have to satisfy all senior liens on the deed. Senior liens on a deed include mortgages (first, second and so forth). HOAs often foreclose a property and try to sell it quickly, settling any deed liens in the process.

Foreclosures and Redemptions

Foreclosures by homeowners associations for small amounts of unpaid dues do occur. Also, mortgage lenders have been known to foreclose against an HOA that’s foreclosed and taken a property for unpaid dues. You can stop your HOA from foreclosing on your property for unpaid dues by paying them at any time. Lastly, certain states like California feature HOA foreclosure redemption periods. California’s HOA foreclosure redemption period for homeowners is 90 days.

The FHA Guidelines for HOA Liens

The Federal Housing Administration (FHA), a part of the Department of Housing and Urban Development, writes mortgage insurance policies on home loans in the United States, giving lenders protection in the case of homeowners defaulting on their loans. Lenders must meet FHA requirements to be eligible for the mortgage insurance program. They also must follow FHA policy on condominium title transfers that occur after a condo Homeowner Association (HOA) puts a lien on a property for non payment of HOA fees.

HUD Mortgage Letter

HUD set out new FHA guidelines for HOA liens in a June 2012 mortgage letter to lenders issuing FHA approved mortgages. The letter referred to changes in policy regarding title transfers on condo properties that have HOA lien. It was the first such policy change from HUD since 2002.

Borrower Responsibility

HOA fees are not items that are paid from an escrow account for FHA insured mortgages. The FHA considers payment of HOA fees the sole responsibility of the borrower.

Default Scenario

In case of borrower default and subsequent foreclosure proceedings on an FHA insured mortgage, the FHA requires lenders to name and serve the HOA as part of foreclosure proceedings to dismiss or reduce HUD’s liability for overdue HOA fees. The lender pays any outstanding HOA fees upon completion of a foreclosure sale. Lenders must protect HUD’s interests in the case of any condo HOA bringing foreclosure proceedings where a mortgage backed by FHA insurance is involved. HUD requires all HOA liens to be removed before it takes over title on foreclosed condos, effectively leaving the lender to either negotiate removal of fees or pay them.

Lender Fee Recovery

HUD repays lenders for HOA fees occurring between the foreclosure date and the date of title transfer to HUD, as well as interest and penalties run up by the former condo mortgage holder.

Effects on Condo Owners

For condo owners being foreclosed upon, the HOA has a legal right to attempt collection of unpaid fees from you. They may bring legal action or refer the matter to a collection agency. For buyers of foreclosed condos, the issue of unpaid HOA fees is settled prior to purchase. Buyers should investigate the financial state of the HOA before buying a condo.

If you would like more information about the CROWDpad LLC Real Estate Investment Program, please contact THE ARIA GROUP at 949-264-2022 or email at info@CROWDpad.coImage

Texas Crowdfunding Conference

The CrowdfundTX Conference featured an impressive assemblage of crowdfunding leaders from around the country. Organizer, Chris Camillo who sits on the board of the Crowdfunding Professionals Association, noted that bringing this group of “speakers together may never happen again.” The conference kept participants glued to their seats as real issues were discussed, leaving everyone feeling updated and excited about investment crowdfunding.

The top ten issues discussed at the conference were:

  1. Jobs: Investment crowdfunding was approved in 2012 when President Obama signed the JOBS Act into law; implementation still awaits regulations from the SEC and FINRA. The jobs, however, aren’t waiting. Heather Lopes, CEO ofEarlyShares, noted that the “JOBS Act has already created 1,500 to 2,000 jobs” from firms that have been launched to do investment crowdfunding and provide related services since the law passed. This represents a mere drop in the bucket compared to the potential jobs impact from unleashing investment crowdfunding, panelists suggested.
  2. Investment Crowdfunding: Perks or reward-based crowdfunding arguably goes back hundreds of years though its popularity on the internet goes back only about five years. Camillo noted that some companies can make little use of rewards-based crowdfunding, suggesting that a “If a physician has an idea for a new medical device, that is a better fit for equity.” Lopes also noted that the kindness that led to a New York community raising $75,000 to help a restaurant destroyed by Hurricane Sandy will also influence equity investments in crowdfunding.
  3. Race and Gender: Visiting one-on-one with Jonathan Sandlund of TheCrowdCafewhile being filmed for a segment in the upcoming documentary film Crowd of Angels, Sandlund agreed that crowdfunding would largely eliminate cultural biases observed in angel and venture capital financing, which are dominated by men making investments in businesses controlled by men. Crowdfunding deals go to women in the roughly the same proportion that women own businesses, according to The Crowdfunding Revolution. Sandlund expressed the belief that racial bias is also being eliminated by crowdfunding.  Rodney Sampson, author ofKingonomics, said, “If you don’t know what crowdfunding is, you can’t seek it out. We need an onramp of over-, over-education.” He added that for venture capitalists, crowdfunding “success will come first; race and gender will become secondary.”

Continue Reading

Crowdfunding Industry Briefing

Crowdfunding Capital Advisors is proud to announce the first of a monthly series of Crowdfunding industry briefings on November 19, 2012.

Access to information is the difference between success and failure—this rings especially true in a nascent industry. In an environment where companies are making decisions based upon regulations that are not even written yet—up to date information and access to insiders will mean the difference between success and failure.  For those who wish to participate in crowdfunding this is of particular importance.

As the leading crowdfund analysis firm and the group at the center of the launch of this global movement, we are being asked on a daily basis for briefings on what is occurring at the highest levels of this global movement. In response to overwhelming demands, beginning November 19, the Principals of Crowdfund Capital Advisors will be launching a monthly briefing on the state of the crowdfunding industry. Here is the link:

This briefing will provide information and behind the scene updates on:

  • Regulatory changes and updates on the status of the JOBS Act implementation.
  • A global update on regulatory occurrences—what other nations are doing and how to benefit from these changes.
  • Breaking news and data—CCA is a leader in crowdfunding research, all new data produced will be released at these meetings.  Participants will have early access to the full reports before anyone else. These surveys and peer reviewed research papers will give insight into the market data (that has be reviewed and verified by leaders in top tier institutions.)
  • Current industry analysis—no other organization has the view that the CCA team has. We are speakers at all of the major conferences, know all of the participants and see what is occurring from an insider’s perspective. These briefings will provide an overview of the industry with key insights on opportunities to benefit and other information that will give those interested in participating in crowdfunding a true competitive advantage.

This month will be one of our biggest updates. Over the last two months we have or will be:

  • Worked with leaders of the Italian government, entrepreneurial and investment communities. Italy legalized crowdfund investing on October 6, 2012.
  • Worked with leaders of the Colombian government, entrepreneurial, and investment communities.
  • Advised entrepreneurial, government and industry leaders in Canada regarding crowdfund investing.
  • Speaking at events at the White House, UC Berkeley and SEC.
  • Revealing original data on the size of the crowdfunding market.

Up-to-date information gives you the completive advantage you need to thrive in today’s market. Please join us for an in-depth look at the crowdfunding industry. To facilitate discussion during our Q&A period we will be limiting the number of seats for this virtual event.

Who Should Attend:

  • Crowdfunding Platforms
  • Crowdfunding Service Providers
  • Investment Industry Professionals
  • Governments exploring crowdfund investing initiatives
  • Investors seeking trends for identification of investment opportunities
  • Legal, Accounting, and other professional service providers looking to help clients with new information

Need original research?  The CCA team works with a number of organizations producing original reports, analysis, conducting independent crowdfund audits, and consulting services. For more information contact us at

Over $1 Million in Equity Pledged on IPO Village for First Ever Equity-Based Crowdfunded IPO

NEW YORK, NY–(MarketwireOct 1, 2012) – IPO Village, the first of its kind crowdfunding platform to host initial public offerings, announced today that they have received over $1 million in pledges for their first crowdfunded IPO set to go live in the coming weeks. IPO Village is an organization that uses crowdfunding to bring exclusive pre-IPOs to the everyday retail investor, allowing “Main Street” investors to access stock that was once only reserved for the Wall Street elite.

“We are thrilled with the number of people signing up to lock in a chance to purchase shares at pre-IPO prices,” says Howard Orloff, the managing director of IPO Village. “Our first company is set to go public within the coming months and already $1 million in pledges from approximately 500 retail investors have been received through Retail investors are excited to secure their place in line for our first crowdfunded IPO.”

While investors are not committing themselves to purchase stock, they are securing their place in line. Once an investor signs up on their website they receive an email giving the name of the company and detailed information to begin their research, before making an investment decision. When the offering comes out of the quiet period, investors who sign up will receive an alert letting them know that the opportunity to purchase stock has opened. Investors will receive the option to purchase the pre-IPO stock based upon the day that they signed up on the site.

“First come first serve is really the only fair way to go about it,” says Simon Erblich, Founder of IPO Village. “Right now pre-IPOs go to the wealthiest investors and institutional investors first. The average ‘Joe’ does not get pre-IPO stock that just doesn’t happen. By the time they see the stock, it has been marked up at least 22%. By using the crowd to fund IPOs we are bringing Initial Public Offerings back to the Public where they belong and were intended to be.”

There’s only a short period of time remaining before the first official offer goes live, but IPO Village is already more than half way towards reaching its goal, since over a million dollars has already been pledged. With such aggressive interest already in place, the Company strongly anticipates that their first offering will sell-out very quickly once investors are allowed to start investing as the line of investors surpasses the 1000+ mark.

IPO Village does not have to wait until the JOBS Act is fully implemented in 2013 as they are “crowdfunding” publically traded stock. Their launch will mix high-tech and traditional finance in a way that has not been seen before. To learn more about crowdfunding IPO investments, gain more insights on IPO Village, or secure your place in line, visit

IPO Village offers IPO investment opportunities to every retail investor. While other crowdfunding type sites focus on private offerings, IPO Village’s hosted public offerings provide its member investors with liquidity and a foreseeable exit. The Company employs a “first-come-first-served” policy with all parties equally welcome to invest. Since IPOs are typically oversold, IPO Village guarantees a place in line and encourages retail investors to sign up now at

Kimberley Brown
Leverage PR
Email Contact
Phone: 512.271.9489, Ext: 702




Standoffer helps you sift through all the crowdfunding platforms.


CrowdFunding is taking the world by storm. There are traditional crowdfunding, artist crowdfunding, project crowdfunding, tuition crowdfunding, civic crowdfunding, fundraising crowdfunding sites popping up everywhere. We’re expecting even more crowdfunding concepts to come out of the woodwork in the next two years. There are even crowdfunding sites to invest in startups, starting pop up now in anticipation of the JOBSAct regulations that should be released around the first part of the year.

A startup based in the “Cool Tech” city of Columbus Ohio, called StandOffer, is setting out to make the troves and troves of crwodfunding sites easier to navigate. Using their proprietary algorithmic system, dubbed “crowd control” StandOffer is going to connect users with the crowdfunding site that will work best for them and their needs. You may think your project is great for Kickstarter, but StandOffer may know there’s a different site out there for it. StandOffer would then show you what to do to move forward.

The founding team at StandOffer has been working closely with crowdfunding startups everywhere to insure that they offer the best, most up to date data, and an easy way for people to apply for crowdfunding across multiple sites that fit their goals.

StandOffer is like a for crowdfunding sites and it could not have come at a better time.

We got a chance to talk with Mason Estep the founder of StandOffer in the interview below:


Read More Here


Crowdfunding with WordPress

English: WordPress Logo
English: WordPress Logo (Photo credit: Wikipedia)

It’s the talk of the town interwebs, crowdfunding is in! People are opening up to new ideas and actually investing in them via online portals, donation widgets and sites dedicated to a cause/product. By the time this year is up it will be known as the “Year of the Fundraiser“. While the concept is not at all new, the way it’s being done online, where the investor/donator has never met the benefactor, is a completely new phenomenon. And, that’s a good thing. Because, seriously, why can’t we all just get along and benefit from great ideas?!

Read More Here