Sponsor must be primarily engaged as a Real Estate Sponsor.
Raw land, & land owned in a fund, Individual for-sale Single Family Residential, Manufactured Housing not owned in a Fund or part of a portfolio, Properties where Cannabis/Marijuana is the primary use, Multifamily 4 units or below, Gas Stations.
Majority owner of the GP must be an approved Sponsors. If a Co-Sponsor Partnership is 50/50 both Sponsors must be approved individually.
Gaps in experience are not counted towards the total years of experience.
One Principal must have a minimum of 5 Years of True Principal Experience.
In excess of the minimum five years of Principal experience, 50% of Executive Experience can be credited towards the minimum.
A General Partner or Managing Member of the Sponsorship entity that has cash equity at risk in the ownership of the project and has an active role in the execution of the business plan. In many cases, the Principal will sign on the debt and take on recourse.
Number of years an individual has spent executing investments in a Principal capacity.
The actual costs to acquire, improve and/or stabilize a property. Costs typically included in Cost Basis include acquisition price, acquisition costs, capital expenditures, development hard and soft costs, interest carrying costs, tenant improvements and leasing commissions.
Based on the Cost Basis for Current Assets and Disposition Value for Historical Assets
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RealCrowd was built to provide accredited investors access to high quality, experienced owners and operators of commercial and multifamily real estate. We evaluate all potential Sponsors by the same criteria which can be found here, — Minimum Qualifications. All Sponsors must meet these requirements.
First, review the Sponsor Criteria to confirm you meet the requirements. If you do, then email our Real Estate team to arrange a call, — email@example.com. You will be required to complete a two-page application and supply a full real estate schedule of both the current portfolio and all sold properties.
The time required varies based on the completeness of the information supplied and the amount of research required to verify that information. Our goal is to complete the process within five to seven business days.
There is no cost associated with the Sponsor application.
RealCrowd does not, and cannot, approve or reject any offering. Once we have approved a Sponsor, they then have access to our marketplace to conduct a Regulation D 506(c) of an allowable product type.
RealCrowd is compensated through an on-boarding fee for each offering as well as a per investor administration fee for each investor that commits to the offering and executes documents. A schedule of these costs can be found here.
All offerings on RealCrowd are made by the Sponsors, not by RealCrowd. All terms of the offering, including financial and operations terms, are determined by the Sponsor and the offering documents are prepared by them along with their legal counsel.
A Sponsor must be an approved Sponsor before starting the on-boarding process. If an approved Sponsor has a new offering, then these steps are followed:
1. The Sponsor completes two web-based onboarding forms. One form provides information on the offering and the other form provides updated, current information on the sponsorship.
2. Along with these forms the Sponsor provides offering documents, marketing materials, financial models, photos and any additional information for potential investors to review.
3. Once RealCrowd has received a complete set of onboarding forms, supporting documentation and a signed Platform Agreement we will build a draft of the offering page.
4. Upon completion of the draft offering page we will review all documents to ensure that the terms of the offering are accurately conveyed on the offering page.
5. A list of all remaining questions, items needing clarification, and a copy of the offering page will then be sent to the Sponsor for review and response.
6. The final offering page will then be launched into the marketplace once all edits have been made.
Our goal is complete this process in five to seven business days but the timing is dependent upon the completeness and availability of information and the responsiveness to questions.
Accredited Investors that invest through RealCrowd each make their own decision whether to invest or not invest in any particular offering. Their investment decisions are based on many variables including their personal situation, Sponsorship, property type, location, hold period, offering terms, and other factors. It is important to understand that the results of any offering, both the timing to raise the equity and the dollar amounts raised, are based upon the market demand for that offering.
Accredited Investors that invest through RealCrowd each have their own unique investment goals. For example, some investors have a higher risk tolerance and seek out only Value-Add or Opportunistic properties and other investors with a lower risk tolerance are seeking capital preservation and cashflow and invest only in Core properties. Given the diversity found in RealCrowd investors there is not one profile of offering that performs best.
RealCrowd most often works with Sponsors who are syndicating equity from their existing base of investors and are making an offering on RealCrowd in order to augment their equity raising process and to develop new direct relationships with Accredited Investors.
RealCrowd’s goal is to work with high-quality, experienced Sponsors regardless of property type or market and does not, nor cannot, target certain property types. Since Sponsors get not only equity for their offering, but also a direct, unrestricted relationship with each investor they can choose to conduct a wide range of offering amounts. Recent property offerings have reached $8MM and fund offerings have reached $26MM.
RealCrowd was formed in 2012 and we completed our first offering in 2013. Since then RealCrowd has completed over 240 offerings for both properties and funds and investors have invested over $300MM through our platform.
Over 25,000 potential investors receive and review offerings from RealCrowd.
RealCrowd is the only true “Direct” commercial and multifamily real estate crowdfunding platform. All Sponsors that use RealCrowd get a direct relationship with each and every accredited investor that chooses to invest in their offering. The long term value provided to RealCrowd Sponsors is the ability to raise equity from these investors for any future offering without restrictions or further compensation to RealCrowd.