“You can’t negotiate fact”
Anonymous
DAILY REAL ESTATE NEWS | MONDAY, FEBRUARY 22, 2016
Investors purchasing homes to spruce them up for a quick resale are looking beyond banks and tapping funding for their new projects through crowdfunding platforms.
For example, David Berneman’s family business, Golden Bee Properties, borrowed $1 million from 44 small investors – some who just offered $5,000 – through a crowdfunding site. Berneman used the funds to purchase a West Los Angeles home that he intends to renovate before trying to sell it again.
Read more: Crowdfunding Grows Up
“It’s like a Kickstarter for the real estate industry,” Berneman told the Associated Press. “It allows people to get into real estate investing in a way they wouldn’t have been able to before.”
What was once driven by the tech industry, crowdfunding is becoming more common in real estate. Between September 2013 and 2015, investors have poured $870 million into crowdfunding platforms, according to Crowdnetic, a data provider in New York. About a quarter of that amount — $208 million alone – was devoted to real estate projects..
“There’s a crowdfunder popping up once a month now, and the low-hanging fruit is the fix and flips,” Jonathan Lee, a principal at George Smith Partners, an L.A. real-estate-financing firm, told the Associated Press.
Crowdfunding sites — like Patch of Land and PeerStreet — are allowing house flippers to find a much larger investor pool for their projects. The crowdfunding platforms are often open to accredited investors who net more than $200,000 annually and have a net worth of at least $1 million.
“Flippers traditionally are financed by ‘hard money,’ or short-term loans with double-digit interest rates that are secured by a hard or tangible asset, in this case real estate,” the Associated Press reports. “Like hard-money lenders, crowdfunding platforms guard against risk by securing the loans to the property and lending for less than its full value.
If a borrower goes bust, the lender takes title to the property, which, in theory, can be sold for more than the loan principal.” For example, the crowdfunding site PeerStreet usually will only lend about 75 percent of a home’s value.
“Real estate is a tangible asset,” says Eric Smith, director of data analytics for Crowdnetic about the appeal to crowdfunding in real estate. “It’s not like you’re going out there trying to buy into the next Facebook.”
Source: “House Flippers Turn to Crowdfunding Platforms for Financing,” Associated Press (Feb. 20, 2016)
FROM ME:
Phoenix Commercial Real Estate and Investment Real Estate: investors and Owner / Users need to really know the market today before making a move in Commercial Properties or Investment Properties in Phoenix / Tucson / Arizona, as the market has a lot of moving parts today. What is going on socio-economically, what is going on demographically, what is going on with location, with competing businesses, with public policy in general — all of these things affect the quality of selling or purchasing your Commercial Properties, Commercial Investment Properties and Commercial and large tracts of Residential Land in Phoenix / Tucson / Arizona. Therefore, you need a broker, a CCIM (Certified Commercial Investment Member) who is a recognized expert in the commercial and investment real estate industry and who understands Commercial Properties and Investment Properties.
I am marketing my listings on Costar, Loop-net CCIM, Kasten Long Commercial Group. I also sold hundreds millions of dollars’ worth of Investment Properties / Owner User Properties in Retail, Office Industrial, Multi-family and Land in Arizona and therefore I am working with brokers, Investors and Developers. I am also a CCIM and through this origination ( www.ccim.com ) I have access to marketing not only in the United States, but also international. Click here to find out what is a CCIM: https://en.wikipedia.org/wiki/CCIM
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3rd QTR 2015 GREATER PHOENIX APARTMENT OWNER’S NEWSLETTER Kasten Long Commercial Grpup.
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2016 Official Arizona Visitors Guide
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Facts of Arizona – year 1848 to 2013
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Feel free to contact Walter regarding any of these stories, the current market, distressed commercial real estate opportunities and needs, your property or your Investment Needs for Comercial Properties in Phoenix, Tucson, Arizona.
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Kasten Long Commercial Group tracks all advertised apartment communities, including those advertised by other brokerages. The interactive map shows the location of each community (10+ units) and each location is color coded by the size (number of total units).
Click here for Map of Apartments for Sale (10+units)
Walter Unger CCIM, CCSS, CCLS
I am a successful Commercial / Investment Real Estate Broker in Arizona now for 20 years. If you have any questions about Commercial / Investment Properties in Phoenix or Commercial / Investment Properties in Arizona, I will gladly sit down with you and share my expertise and my professional opinion with you. I am also in this to make money therefore it will be a win-win situation for all of us.
Please reply by e-mail walterunger@ccim.net or call me on my cell 520-975-5207
Walter Unger CCIM
Senior Associate Broker
Kasten Long Commercial Group
2821 E. Camelback Rd. Suite 600
Phoenix , AZ 85016
Direct: 520-975-5207
Fax: 602-865-7461
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