Sponsor Resource Center
In this article we give an overview of online capital formation and IRM solutions, highlight the synergistic benefits delivered by the two solutions, and provide several examples of how real estate sponsors are using these tools to significantly scale their investor networks while streamlining fundraising processes.
A real estate syndicate is a group of investors who pool their capital to buy or build property. Combined, individuals and companies have more buying power than what they could manage on their own. Syndicates are commonly structured as special-purpose entities, such as limited Partnerships (“LPs”) or limited liability companies (“LLCs”). Despite the legal form it takes, a special purpose entity is the method by which investors purchase the real estate, such as an apartment complex, office building or even a portfolio or property fund.
Real estate industry heavyweights such as Blackstone are starting to recognize what online fundraising platforms have known for some time, that the power of the crowd is too big to ignore. Rather than leaving money on the table, enterprise real estate firms are looking at ways that they can directly tap into capital held by individual investors.
The Jumpstart our Business Startups or JOBS Act has been widely acknowledged as the catalyst to launching crowdfunding and the emergence of an entirely new market for online real estate fundraising and investing. In 2015 with the SEC approval of new Regulation A+ rules under Title IV of the JOBS Act that door was thrown … Continued
Real estate crowdfunding has experienced explosive growth in the past three years with dozens of platforms emerging to offer investment opportunities to investors. In this article we breakdown the two leading business models, Direct-to-Investor marketplaces and Special-Purpose Vehicle (SPV) Marketplaces, and highlight how each impacts investor returns, risks, and relationships.
Real estate syndications have a long tenure in the industry as a financing source and an investment vehicle. Technology firms like CrowdStreet are now using technology to bring these processes online, streamline operations for both investors and sponsors and make the existing opportunities accessible to larger numbers of accredited investors.
CrowdStreet platform allows sponsors to host their own online fundraising and investor relationship management.
Commercial real estate firms keep pace with technology by integrating a custom branded crowdfunding platform with their website.
Real estate firms leverage crowdfunding technology platform to evolve beyond crowdfunding through a public marketplace to offer investments to their own investors via their own website.