One of the most exciting developments from the 2012 signing of the JOBS Act by President Obama has been the rapid rise of crowdfunded real estate investing.
For the first time in history, companies are now legally allowed to solicit securities-based funding from the general public, and many are successfully raising capital for a variety of real estate projects.
In fact, developers across the country are quickly realizing that crowdfunded capital is both easier and cheaper to raise than funds from traditional sources such as banks and the public markets.
And thanks to new, state-of-the-art crowdfunding portals such as Equifund Realty, companies are able to market their projects to a much wider audience and build a larger pool of investors than ever before.
Investors are benefitting immensely from new regulatory changes as well.
For over 80+ years, the only people who could legally participate in private real estate investment offerings were wealthy individuals known as “accredited” investors – people with a net worth over $1 million or an annual income over $200k.
But now, thanks to the implementation of new regulations and the explosion of real estate investing through crowdfunding portals, institutional-quality real estate deals that were once exclusively reserved for the financial elite are now becoming accessible to all investors – regardless of net worth or income.
Simply put, crowdfunded real estate investing is a disruptive new force in capital markets that is quickly proving to be a win-win for both real estate firms and investors across the board.
Equifund Realty is our newly launched real estate crowdfunding portal that is designed to help real estate firms connect with investors to crowdfund exciting, high-quality projects. These projects can range from multifamily residential and commercial developments to industrial properties and self-storage facilities, all across the country.
Our proprietary technology is transforming the way real estate stakeholders design, build, operate, and use real estate by making capital cheaper and easier to raise. By offering bespoke financing solutions, we give firms the flexibility they need to meet their specific funding requirements.
Equifund Realty specializes in a variety of online capital raises including Reg CF, Reg A+, Reg D 506(b), and Reg D 506(c) exemptions, and our platform can accommodate both debt and equity deals – including preferred equity.
To briefly summarize, Reg CF is a securities offering which allows startups to raise up to $1,070,000 from both accredited and non-accredited investors while Reg A+ is a securities offering that is like a “mini-IPO” – allowing larger companies to raise up to $50 million from accredited investors as well as the general public.
Reg D 506(b) and Reg D 506(c) offerings can raise unlimited amounts of capital from investors. However, while accredited investors can take part in both of these offerings, only Reg D 506(b) allows a limited number of non-accredited investors to participate (up to 35). Also, only Reg D 506(c) allows general solicitation and advertising of the offering.
But in addition to supporting different forms of capital raises, our experienced team can also structure side-by-side crowdfunding deals using different exemptions simultaneously.
For example, a company may choose to structure a side-by-side fundraising round of Reg D 506(c) & Reg CF. This gives developers the advantage of targeting both accredited and non-accredited investors while also allowing them to raise funds beyond the Reg CF limit of $1,070,000.
With Equifund Realty, companies and their projects also gain significant exposure to a solid and diversified base of investors. Our growing membership includes not only high-net worth accredited investors, but also non-accredited investors, venture capitalists, and institutional investors as well – all eager to gain entry into the private real estate investing market.
Moreover, our experienced and dedicated team of professionals have made fundraising on our platform as simple, straightforward, and seamless as possible, so companies can spend less time worrying about raising capital, and more time focusing on their projects.
For a more in depth explanation of how Equifund Realty can help finance your next real estate project, please visit our FAQ section here.
Investors understand the importance of real estate.
It is simple, straightforward, and relatively easy to understand, and has historically enjoyed strong returns and lower volatility.
Yet in the past, only high-net-worth individuals known as accredited investors were allowed to invest in securitized private real estate investment offerings.
However, thanks to sweeping changes brought on by the 2012 JOBS act, new crowdfunding regulations now allow eligible companies to raise capital from non-accredited investors for the very first time. More importantly, these regulations have created a brand new industry that is completely revolutionizing real estate investing for investors.
Real estate crowdfunding simply involves the pooling of financial resources from an online crowd of investors to invest in real estate projects – only now, anyone can invest like a multi-billion dollar institution by diversifying into private market real estate investments.
Want to become your own real estate mogul?
Equifund Realty is an industry-leading platform that not only helps real estate firms raise capital, but also brings exclusive, institutional-quality real estate opportunities to our growing membership base of accredited and non-accredited investors.
With access to debt, equity, and preferred equity deals across a wide range of real estate assets including multi-family residential, single family homes, retail, industrial, and office properties, our industry-leading platform is completely transforming the way investors buy and sell real estate.
Take your initial capital investment as an example.
Prior to real estate investing through crowdfunding, investors would often be required to invest tens of thousands of dollars (at a minimum) just to gain access to private real estate deals.
But with Equifund Realty, you don’t need to be rich to own a piece of a hotel, apartment complex, or an office building. Our platform can give you access to opportunities that would normally be out of reach, and that are outside your city or region because of their scale or location. Furthermore, our risk-assessment software gives each securities offering a clear rating so you know the risk profile of the investments you’re considering.
Another benefit for investors is the potential for better returns.
With the efficiencies generated by making investments directly available to investors through an online format, we have lower overhead and can offer a competitive, low-cost structure that translates into more of your dollars invested into the physical assets – thus amplifying your potential returns.
In addition, Equifund Realty investors can enjoy passive income by collecting monthly or quarterly cash flow distributions as well. You don’t have to manage the properties and you’re entitled to a fixed share of profits.
For example, equity investors that purchase stakes in commercial or residential properties may potentially earn returns through rental income generated (along with asset appreciation). Meanwhile, debt investments are repaid with interest – of which a percentage is paid to each investor that participates in the deal.
However, it’s important for investors to note that these investments do carry risk. Not only is there a lack of liquidity, but loss of invested capital is also possible. Furthermore, projected returns are not guaranteed.
Nevertheless, we here at Equifund believe that private market real estate plays an important part in any diversified portfolio and so we’ve built a dedicated platform that simplifies the investing process for investors.
If you’re interested in learning more about how Equifund Realty how it can help you diversify your portfolio into high-quality, private real estate investments, please visit our FAQ section here.
Equifund Realty is a highly specialized equity and debt crowdfunding platform that connects companies with investors looking to invest in institutional-quality real estate projects across the country.
Our experienced and dedicated team has a deep understanding of a variety of online capital raises including Reg CF, Reg A+, Reg D 506(b), and Reg D 506(c) exemptions, and have made our platform as simple, straightforward, and seamless as possible for both companies seeking capital to fund projects and investors eager to take part in the booming crowdfunding industry.
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