What should I consider in deciding to become a COIN investor?

Pros:

• The rewards are more than financial. By investing in a local enterprise, you support your local economy and increase the local quality of life.
• Dividends and repayment may also take the form of in-kind payments.
• The level of familiarity and knowledge that comes with a local investment can provide investors with greater insight into the business.

Cons:

• Private transactions carry risk. There is no regulatory oversight or recourse, and investors must conduct their own due diligence.
• Since COIN loans are unsecured, the investment could potentially be lost if the business fails.
• Some investments can be considered long-term, with no easy way to cash out.

How much money should I be prepared to loan?

There is not a maximum or minimum amount an investor needs to be prepared top loan. An investor can make as many or as few loans as they would like over any period of time.

How do I learn about investment opportunities?

Businesses seeking loans submit their Business Opportunity form to COIN. Approved Business Opportunities are emailed to COIN member investors, and are posted to the COIN website in the Members Only section. Additionally, members come together for business profile and networking events 2 -3 times per year.

How are loans structured and made?

The terms of loans are established exclusively between the investor and the entrepreneur, however COIN is able to assist with information such as standard templates and typical terms. COIN investors understand they are making unsecured loans using whatever instrument they agree upon with the entrepreneurs.

What are the federal and/or state laws that regulate local investment networks and this kind of investing?

Federal:  https://www.investor.gov/introduction-investing/investing-basics/glossary/rule-506-regulation-d               

State:  https://apps.leg.wa.gov/WAC/default.aspx?cite=460-44A-050