Over the years, our technology has matured and made the crowdfunding process more efficient for sponsors. Our goal is to automate tasks where possible and free up sponsors to create value for their investors.
At RealCrowd, accredited investors know us for having a unique marketplace where they can find high quality, experienced real estate sponsors to review investment opportunities with.
Sponsors looking to promote their offering on the RealCrowd marketplace must first be vetted and approved. Upon approval, you are granted access to our marketplace and are invited to follow these steps to onboard and launch your offering:
The offering page is your own personal website within our marketplace that presents your investment opportunity to potential investors. Each page is tailored to your unique business and offering.
We find that investors place just as much emphasis on information about sponsors as they do on the opportunity presented. Your offering page is your first chance to make a lasting impression.
We have divided the information into the following categories. You can also download this handy checklist to help you get the documentation in order.
We ask sponsors to submit their company name, logo, number of employees, founding year, address, phone number, email, and website.
A few paragraphs that describes your company’s history and investment focus will be used in the “About the Sponsor” section on your offering page.
We also ask for names of your Principals, their years of experience, and photos. You should also provide a point of contact for investors.
Additional information includes:
Investors place a heavy emphasis on the experience level of a sponsor. They check for the following:
All this information is presented in your offering page to provide investors a quick glance of your experience level.
Investors spend a considerable amount of time going through the numbers. Sponsors who provide in-depth analysis and information about their assets position themselves as transparent and well-prepared.
While we don’t require a pro forma to launch, a detailed Pro Forma (preferably in Excel) helps investors understand the offering.
We suggest that your marketing collateral be made up of:
You should also provide:
To build trust, investors want to see relevant proof in the form of testimonials from other investors, featured news articles, and photos of past deals.
Believe or not, investors will read through PPMs and other material to understand the inner workings of a deal. We ask sponsors for the following:
You can also control how you will raise and distribute funds by letting us know:
1 to 2 paragraphs explaining the investment and the opportunity to create value.
4-8 bullet points that highlight unique aspects of the property and/or investment opportunity.
1 paragraph highlighting the benefits of the property's location.
You’ll be asked to provide a Distribution Structure Description. For example, 8% Preferred Returns with 70/30 split thereafter. You can also explain any catch-ups, multiple waterfall hurdles, and priorities of distributions.
This is a list of the sources and uses for this investment.
We ask for a dollar amount or percentage for ALL fees retained by sponsorship throughout the duration of the investment.
This includes property management if this service is in-house. If property management is performed by a third party, this fee is excluded.
Other examples of fees include:
We also ask that you specify if the fees are one-time or on-going.
A description of how property management fees are charged at the property and if it will be managed internally or by a third party.
If managed internally please explain what portion of fee is to offset hard costs incurred for property management.
Projected investment period in years. Provide either an exact number of years or a range of years.
Basic information includes:
Other financial information includes:
Finally, we ask you to let investors know the deadline to wire funds and the expected close date.
Once all documentation is submitted, RealCrowd will review it to ensure consistent presentation of information from the documentation to the offering page. This step helps to avoid mis-statement of facts and helps to present the offering as clearly and accurately as possible. We then send it back to you for a final review.
Your personal offering page is then launched out to 20k potential investors!
Check out the articles below to continue learning