Scale your high-net worth investor network and accelerate real estate syndication

The 2012 Jobs Act created real estate crowdfunding by allowing commercial real estate firms to directly and publicly solicit investments from accredited investors. Prior to the Jobs Act, the Securities Act of 1933 sharply restricted real estate syndication to private investment offerings made to parties with existing substantive relationships. While these “country club” investments had the effect of protecting uninformed investors, they also constrained overall real estate development.

Post-Jobs Act we’re seeing a renaissance in commercial real estate development. Significant new pools of investment capital have emerged with the acceptance and rapid growth of real estate crowdfunding. Reg D 506(c) investment offerings can now be publicly advertised to the more than 9M accredited investors in the U.S. and newer Regulation A+ offerings can be advertised to nearly any U.S. investor provided sponsors meet SEC guidelines.

In this brave new world of real estate crowdfunding, one question still remains however…

How do I find real estate investors?
It’s a common question for commercial real estate developers and operators. There’s unfortunately no option to simply buy a ‘commercial real estate investors list’.

However there are a number of excellent options for rapidly growing your own network of real estate investors online:

  • Acquire investors from an existing network. This is by far the most direct path. The CrowdStreet Marketplace is an great option here as the world’s largest direct-to-investor marketplace for commercial real estate. When you place an investment offering on the CrowdStreet Marketplace, each investor you subscribe becomes your investor post-closing.
  • Directly solicit investors for a specific offering using paid digital advertising. Efficiency is the key here as there’s a steep learning curve and it’s easy to run through a huge budget while testing out ad options. CrowdStreet offers a number of digital advertising solutions that can deliver the best bang for the invested buck.
  • Build investor interest and trust in your firm using content marketing. This is one of the most cost-effective options, however it can take significant time and effort to generate results. The CrowdStreet team can help guide you to the best content marketing strategy and execution, drawing from our own highly successful content marketing programs.

One option you’ll want to consider when raising online equity capital is how you’ll progress potential investors from reviewing your offering to submitting an offer. Presenting a modern and secure investor experience is crucial to subscription rates. New ‘white-label’ real estate crowdfunding platforms such as the CrowdStreet Sponsor Direct provide a safe and ready-to-fundraise solution. The CrowdStreet Sponsor Direct includes everything sponsors need to publish online investment offerings, subscribe investors, transact offerings, and manage investors through the life of the hold.

Interested in learning more about CrowdStreet and building your investor network?

Click here to more about our Sponsor Direct platform.

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