Is Crowdfunding The Best Commercial Real Estate Capital Solution For You?

The traditional process of real estate financing was drawn out, tedious and often lead to missed opportunities. Institutional banks and hard money lenders only give loans to the most creditworthy Sponsors with extensive track records. Crowdfunding arose as a solution to these hidebound resources and with the wisdom of the crowds behind the marketplace, genuinely innovating investments could be crafted.

You probably have been hearing about crowdfunding real estate investments a lot lately. The move towards online platforms for real estate investors who are actively investing in commercial real estate has grown sharply. This is an intuitive shift as thriving investment platforms allow investors to utilize technology to discover new opportunities. In the past, commercial real estate financing was not nearly this simple.

Types of Crowdfunding Platforms

There are two distinct types of real estate crowdfunding platforms: The first type primarily utilizes their technology to connect investors with real estate developers and sponsors. The other invests in these real estate projects themselves. The business model of the marketplace will either involve them charging a fee or getting a return from making direct investments in projects. Either way, the advantages to developers is faster access to more extensive pools of available capital.

Beware of technology companies masquerading as real estate experts in the crowdfunding space. Leaders in this industry should have a minimum of 10 years experience in underwriting real estate deals to ensure that all offerings made available have been properly curated and intuitive for sophisticated real estate investors who are searching for a quality deal to invest in.

As John McNellis, co-founder the development firm McNellis Partners, said at the 2017 ULI Conference, “To expect these 20-year-olds who are good at tech to be good at underwriting is unrealistic.“

For those who are just starting out in real estate, crowdfunding represents a unique opportunity to raise capital and work with professionals and successful real estate developers and operators. Although more established real estate developers may not have the need to check out crowdfunding platforms because they already use established lines of financing with trusted vendors, there are promising advantages to be gained by choosing the right crowdfunding platform.

Grow Your Investor Base

Well-established Sponsors would be wise to carefully consider the benefits of utilizing existing networks of accredited investors that regularly participate in offerings made available on their site. Choosing a platform becomes a matter of finding the best environment to attract investors and facilitate real estate projects consistently. Currently, residential and commercial building projects are seeing numerous benefits to raising money online.

The Marketplace is a popular option because sponsors are given a broad range of features to ensure their fundraising efforts succeed. The toolbox includes videos, webinars, and images that are useful for spotlighting their project’s unique selling points. They receive a specially-designed landing page which helps attract the right kind of investors quickly.

Lower Fees

Unlike many real estate crowdfunding platforms, RealtyeVest does not charge investor fees and offers a Marketplace in which Sponsors can waive fees upon completion of funding, which can end up being a decisive factor when choosing a platform. Using crowdfunding allows businesses to implement a streamlined process for obtaining capital that eliminates hefty fees from intermediaries. With fewer expenses and a higher profit margin, it doesn’t take long to see why these type of alternative financing is becoming so popular.

Since the platform handles all the heavy lifting of the financing deal, it allows developers and operators to specialize in what they do best. For most companies in this sector, visualizing and promptly executing on specific real estate projects is more crucial than handling the tedious details of putting together the financing package.

Why Make Financing More Difficult Than It Needs to Be?

Financing construction projects (or the purchase price of existing properties) is a crucial building block towards the ultimate success or failure of any project. In the past, the process was a series of clearing hurdles. Streamlining the operations and using online management tools reduces expenses while increasing transparency. Credible companies are aggressively expanding their portfolios, and crowdfunding platforms vertical growth continues to boom.

For newer developers or ones with more innovative ideas, crowdfunding is a way to bypass limitations to expand rapidly. Being able to leverage a network of investors is the fastest way to gain access to the funds needed to turn ideas into final products! It’s time to consider these modern tactics or may be forced to fall back on traditional, less attractive and cumbersome methods.

Explore the World of Real Estate Crowdfunding

Create a free account with RealtyeVest and discover the power of a full-stack financing platform. The only limitations are imagination when it comes to putting together a winning real estate deal. In the next few years expect to see the trends towards online deals growing faster. Platforms are expanding the financing options that they make available, opening up the criteria about who can invest and the types of allowable deals.

Whether your business focuses on multifamily properties or large commercial retail ventures, a crowdfunding platform like RealtyeVest can help you reach your capital raising goals. Discover new possibilities that put more money back in your pocket while limiting the time spent scouring for potential backers for your project and time spent managing investors and growing your network.

Your next deal can be done quickly and efficiently using a leading real estate crowdfunding platform. Profitable returns and happy investors are virtually a few keystrokes away. Why delay when the financing you need for tomorrow’s project is available for you right now?

The post Is Crowdfunding The Best Commercial Real Estate Capital Solution For You? appeared first on RealtyeVest Crowdfunding News.

The Benefits of Investing In Commercial Real Estate Online

The Rise of Online Real Estate Investing

The internet has brought changes to nearly every industry on earth, and tenfold to commercial real estate. The fast-paced growth of technology is transforming how accredited and non-accredited investors connect with real estate sponsors and entrepreneurs of many other industries.

Prior to 2013, there was a ban in place by the Securities and Exchange Commission that prevent solicitation of securities. This prohibition essentially meant that commercial real estate investors and sponsors were forced to only deal with people they knew or met in-person. Having to deal with all your potential investors face-to-face meant that raising funds was a drawn out, labor-intensive affair of phone call and preparing multiple packages of offering memorandums and due-diligence reports, further hindering the time it took to raise capital. This stifled the network of who the Sponsors could reach out to for investments.

All that changed rapidly in 2012 with the passing of the Jumpstart Our Business Startups Act, which lifted the ban on solicitation of securities. Now companies like RealtyeVest are free to use advertising to attract specific, accredited investors. A wave of new marketplaces arose to allow people to invest in commercial real estate online more freely.

Invest in commercial real estate online

4 Benefits of Investing Online

The rise of online investment platforms streamlines the entire investment process for investors and Sponsors. These platforms act as a one-stop hub, built to facilitate commercial real estate transactions, offer educational information for investors and provide inherently lower fees. As a result, accessibility of deals, transparency and credibility, have risen among users of these marketplaces, which is helping to lower fees and increase liquidity in the online real estate investing market.

1. Accessibility of Deals

The issues of finding and identifying quality commercial real estate investments are in the past.  Accredited and non-accredited investors are now able to choose from a broad range of investments in commercial real estate from the comfort of their home. These offerings are readily available on platforms like RealtyeVest to browse, review and analyze the due-diligence before deciding on a course of action. With online real estate investing, investors and sponsors have a huge advantage over the word-of-mouth networking that necessary prior to the JOBS Act which opened the floodgates for real estate investing and many other industries seeking to raise capital for projects.

2. Transparency & Credibility

Another area where online real estate investing excels in with transparency. Online marketplace allows for ratings, reviews, and transparent discussions among professionals. Not only can they help impart education and training, but they are also the primary sources for creating relationships between sellers and investors.

3. Inherently Lower Fees

Due to the efficient nature of online commercial real estate investing, online real estate investors are

online commercial real estate investing

Start investing in commercial real estate online today!

able to pay lower fees than if they were using traditional methods. Like most online business models, the commercial real estate investing industry offers more economical costs. Naturally finding the best possibles fees is always a benefit for an investor, translating directly to higher ROIs. That is why more people continue to flock to the online marketplaces to find deals. As they do, the higher volume of real estate transactions will encourage even more competition to lower fees amongst the major players.

Right now, investors can find zero fees at marketplaces like RealtyeVest. That’s a tempting deal for anyone who is looking to gain healthy returns on their cash. Shopping for the best market makes sense because so many of them are now competing for investors. It pays to shop for the best fee structure and the most reasonable minimum investment amount. For example, CrowdStreet has zero fees but requires a $10,000 minimum deposit to start your account. RealtyMogul, on the other hand, charges fees of .3 to .5 per year but only needs $1,000 to start. Which direction to take will depend entirely on the objectives of each investor.

4. Diversification

With commercial real estate investing, it is easy to diversify investments and to get returns due to the low minimums required to participate in deals. Couple that with the transparency of the offerings in the marketplaces and your money is more secure in ways than it was with the old face-to-face dealing of securities. Accessibility to deals is also through the roof now that investors have access to nationwide opportunities instead of being pigeonholed in areas right around their’s and their friend’s neighborhoods. This more extensive pool of potential investments is hugely beneficial, especially for those who are looking for the highest possible return on quality deals.
Real estate investing is more exciting than ever thanks to the new model. In the past retail investors could buy REITs or ETFs that managed tons of properties. The dividends may or may not remain stable, and the potential for return is never as high as it with individual deals. With smaller investments directly in commercial real estate, the chance exists to gain an outsized return when a building performs at a peak level.

Claim Your Stake

It is safe to say the people are accustomed to online convenience. That ease is now translating to millions of new investors entering the commercial real estate investing space. They’re learning how to find the best deals, and they do not have to do much “leg work” as they would have in the old days. The RealtyeVest Marketplace removes barriers for all parties and makes transactions more predictable in the long run. Being able to tap sources of revenue to finance a wide range of projects is good for everyone. There has never been a more exciting or lucrative time to invest in apartment buildings and commercial properties of all types. It’s time to claim your stake in this burgeoning market.

The post The Benefits of Investing In Commercial Real Estate Online appeared first on RealtyeVest Crowdfunding News.