Crowdfunding for Multifamily, Apartment, and Commercial Real Estate Projects
In 2017, the real estate crowdfunding community raised and placed an estimated $5.5 billion in debt and equity capital in real estate. And, the World Bank estimates that, by 2025, global crowdfunding volume (including real estate and other industries) will reach a staggering $93 billion. For those that don't know, crowdfunding allows small investors to pool their money and invest it as a group in larger investment vehicles that they would not normally have access to (because of capital constraints). The investment is generally managed by the crowdfunding platform in which they source the investment opportunity, and place the money.
Investors are looking for alternative investments to balance their portfolios, and finally there is an opportunity to participate in first lien debt, mezzanine debt, preferred equity, and joint venture equity for the every-day investor with as little as $1,000 out of pocket (although we see the trend heading towards $5,000 - $10,000). What does this mean to commercial real estate developers and multifamily property owners? It means increased access to capital and increased competition amongst competitors resulting in more competitive financing, better terms, and new and more creative options to manage leverage and IRRs. One of the greatest benefits to crowdfunding for multifamily real estate and commercial properties is that some platforms offer pre-funding. Pre-funding allows for the manager of the crowdfunding platform to fund the deal in as little as a few hours (although sometimes as much as a couple weeks) if they think they will be able to comfortably raise the capital from their pool of investors. Crowdfunding easily allows for the fastest closings of all available lenders.
Want to Become a Commercial Real Estate Investor?
Are you looking to invest in crowdfunded real estate opportunities with some of the nation's leading developers? Each opportunity is carefully vetted with Multifamily.loans. Less than 5% of opportunities submitted make it through our rigorous underwriting process. Multifamily.loans crowdfunding solutions are the highest quality, high yield, direct real estate investment opportunities available to accredited investors. We are currently over-subscribed but plan to accept new investors in the first quarter of 2019. If you would like to join our waiting list, please click below and fill out a short form. We will notify you when we are ready to accept new investments.
Hey Developers, Want to Improve Your IRR And Leverage?
Click the link below to reach out to one of our commercial loan officers. We are currently only lending to developers with extensive experience (preferably more than $50 Million in completed projects) and strong financials (minimum verifiable net worth greater than the loan amount). If you are still reading, then maybe we can help you improve your returns and increase your reach. Please fill out the form below for additional information.