Any real estate investment firm or sponsor that has been down the path of raising capital for a project knows first-hand that a solid equity investor with deep pockets is worth his or her weight in gold. Understandably, those relationships are held close to the vest. A sponsor can open up that little black book of contacts and pick up the phone or send a quick email when an opportunity arises. That do-it-yourself fundraising is getting a whole lot easier with new technology that allows companies to host online fundraising on their own branded websites.
At CrowdStreet, we believe there is significant demand among In commercial real estate, the sponsor is an individual or company in charge of finding, acquiring and managing the real estate property on behalf of the partnership. The sponsor is usually expected to invest anywhere from 5-20% of the total required equity capital. They are then responsible for raising the remaining funds and acquiring and managing the investment property’s day-to-day... More to host their own online capital fundraising and we are happy to provide the tools to do it. We are one of the few real estate crowdfunding firms that offer both a direct investment crowdfunding marketplace and a “white-label” software solution that gives sponsors the flexibility to choose the model that best fits their needs.
A New Way to Fundraise
CrowdStreet’s private-label investment management software is a service (SaaS) solution that allows sponsors to offer crowdfunded real estate fundraising and investor management capabilities on their own branded websites. The CrowdStreet platform uses the same technology infrastructure that powers the CrowdStreet marketplace, which gives investors access to the same online investing tools as one of the top crowdfunding platforms in the country. Investors can view deal information, complete offer transactions, receive post-funding updates and track investment performance.
Deal sponsors can take advantage of the efficiencies of the crowdfunding marketplace, and yet still keep that fundraising “in-house” so to speak on their own branded websites. Veteran sponsors in particular already have established relationships with a Core commercial real estate investments are the least risky offering. They are often fully leased to quality tenets, have stabilized returns and require little to no major renovations. These properties are often in highly desirable locations in major markets and have long term leases in place with high credit tenants. These buildings are well-kept and require little to no improvements... More group of high-net worth and institutional investors that they have worked with in the past. Many sponsors view the portal as another tool to better serve that valued investor group, as well as being able to Leverage is the use of various financial instruments or borrowed capital to purchase and/or increase the potential return of investment. Assume a buyer puts 20% down on a $5M property. Essentially, they paid $1M to own something worth $5M. Assuming the property appreciates at 5% per year, the sponsor’s net worth would grow to $5,250,000 in a year. Had they... More the portal to cultivate new relationships.
Ultimately, CrowdStreet allows sponsors to leverage the efficiencies of the technology without losing control of their own private pool of investors. That private and confidential investor data remains firmly in the hands of the sponsor. At the same time, the online portal provides a more efficient means of sharing information, conducting transactions and managing investments that today’s investors expect and demand. Added to that, it helps sponsors to capture that capital that is ready and waiting to invest in commercial real estate today. Don’t leave those dollars sitting on the table. Contact CrowdStreet today for more information on its CrowdStreet investment management software.