The Benefits of Investing In Commercial Real Estate Online

The Rise of Online Real Estate Investing

The internet has brought changes to nearly every industry on earth, and tenfold to commercial real estate. The fast-paced growth of technology is transforming how accredited and non-accredited investors connect with real estate sponsors and entrepreneurs of many other industries.

Prior to 2013, there was a ban in place by the Securities and Exchange Commission that prevent solicitation of securities. This prohibition essentially meant that commercial real estate investors and sponsors were forced to only deal with people they knew or met in-person. Having to deal with all your potential investors face-to-face meant that raising funds was a drawn out, labor-intensive affair of phone call and preparing multiple packages of offering memorandums and due-diligence reports, further hindering the time it took to raise capital. This stifled the network of who the Sponsors could reach out to for investments.

All that changed rapidly in 2012 with the passing of the Jumpstart Our Business Startups Act, which lifted the ban on solicitation of securities. Now companies like RealtyeVest are free to use advertising to attract specific, accredited investors. A wave of new marketplaces arose to allow people to invest in commercial real estate online more freely.

Invest in commercial real estate online

4 Benefits of Investing Online

The rise of online investment platforms streamlines the entire investment process for investors and Sponsors. These platforms act as a one-stop hub, built to facilitate commercial real estate transactions, offer educational information for investors and provide inherently lower fees. As a result, accessibility of deals, transparency and credibility, have risen among users of these marketplaces, which is helping to lower fees and increase liquidity in the online real estate investing market.

1. Accessibility of Deals

The issues of finding and identifying quality commercial real estate investments are in the past.  Accredited and non-accredited investors are now able to choose from a broad range of investments in commercial real estate from the comfort of their home. These offerings are readily available on platforms like RealtyeVest to browse, review and analyze the due-diligence before deciding on a course of action. With online real estate investing, investors and sponsors have a huge advantage over the word-of-mouth networking that necessary prior to the JOBS Act which opened the floodgates for real estate investing and many other industries seeking to raise capital for projects.

2. Transparency & Credibility

Another area where online real estate investing excels in with transparency. Online marketplace allows for ratings, reviews, and transparent discussions among professionals. Not only can they help impart education and training, but they are also the primary sources for creating relationships between sellers and investors.

3. Inherently Lower Fees

Due to the efficient nature of online commercial real estate investing, online real estate investors are

online commercial real estate investing

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able to pay lower fees than if they were using traditional methods. Like most online business models, the commercial real estate investing industry offers more economical costs. Naturally finding the best possibles fees is always a benefit for an investor, translating directly to higher ROIs. That is why more people continue to flock to the online marketplaces to find deals. As they do, the higher volume of real estate transactions will encourage even more competition to lower fees amongst the major players.

Right now, investors can find zero fees at marketplaces like RealtyeVest. That’s a tempting deal for anyone who is looking to gain healthy returns on their cash. Shopping for the best market makes sense because so many of them are now competing for investors. It pays to shop for the best fee structure and the most reasonable minimum investment amount. For example, CrowdStreet has zero fees but requires a $10,000 minimum deposit to start your account. RealtyMogul, on the other hand, charges fees of .3 to .5 per year but only needs $1,000 to start. Which direction to take will depend entirely on the objectives of each investor.

4. Diversification

With commercial real estate investing, it is easy to diversify investments and to get returns due to the low minimums required to participate in deals. Couple that with the transparency of the offerings in the marketplaces and your money is more secure in ways than it was with the old face-to-face dealing of securities. Accessibility to deals is also through the roof now that investors have access to nationwide opportunities instead of being pigeonholed in areas right around their’s and their friend’s neighborhoods. This more extensive pool of potential investments is hugely beneficial, especially for those who are looking for the highest possible return on quality deals.
Real estate investing is more exciting than ever thanks to the new model. In the past retail investors could buy REITs or ETFs that managed tons of properties. The dividends may or may not remain stable, and the potential for return is never as high as it with individual deals. With smaller investments directly in commercial real estate, the chance exists to gain an outsized return when a building performs at a peak level.

Claim Your Stake

It is safe to say the people are accustomed to online convenience. That ease is now translating to millions of new investors entering the commercial real estate investing space. They’re learning how to find the best deals, and they do not have to do much “leg work” as they would have in the old days. The RealtyeVest Marketplace removes barriers for all parties and makes transactions more predictable in the long run. Being able to tap sources of revenue to finance a wide range of projects is good for everyone. There has never been a more exciting or lucrative time to invest in apartment buildings and commercial properties of all types. It’s time to claim your stake in this burgeoning market.

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RealtyeVest’s Innovative Marketplace Is Proving an Early Hit Among Real Estate Sponsors

Company’s Platform Leverages Crowdsourcing Technology to Deliver a Real-Time,
Transparent Solution for Comprehensively Raising Capital

RealtyeVest-logo-lgJacksonville, FLA (October 26, 2017) ― RealtyeVest’s recent move to streamline the cumbersome process of raising capital through its innovative Marketplace platform is already receiving a promising response from the industry.

The company, a leading online marketplace, has announced today that it has signed multiple new clients for its unique platform, RealtyeVest Marketplace. The future of real estate capital raising is here thanks to RealtyeVest’s solution, which leverages crowdsourcing technology to deliver a simple, real-time, transparent solution for real estate sponsors to comprehensively manage its capital campaigns at substantially lower costs along with great results.

“Since launching the Marketplace recently, we’ve received some rather interesting traction,” said Dan Summers, CEO of RealtyeVest. “So far, one national and one regional subdivision developer, one national self-storage operator, one large regional single-family house redeveloper, a real estate investment fund, and a very large international hotel developer in the process of a massive Orlando, Florida development, have signed up for our solution. This is quite a menu of operators all looking to automate their capital raising abilities utilizing our crowdsourcing technology.”

RealtyeVest Marketplace offers real estate sponsors (owner-operators) industry leading benefits including:

  • Series of email blasts to our investor database
  • Prominent placement within website
  • Tracking of individual investor commitments
  • Viewing and download of executed documentation
  • Can access information about all listed projects by Sponsors
  • Email correspondence with performing and non-performing investors

To launch the new program, the company charges a fraction of the cost typically charged to raise funds. As an added benefit, RealtyeVest does not ask for any percentage of the eventual capital raised. “We’re receiving traction as a result of a void in the marketplace for raising capital,” Summers added. “Crowdfunding has gotten a lot of publicity recently, and there are many larger well-established companies that want in but don’t know exactly how nor do they want to wait. The bigger companies realize the value in monetizing a deal quickly, and as a result, increasing deal flow and cutting back on their workforce and overhead.”

Up to now, traditional capital raising methods have proven drawn out and slow. In addition, reaching out to large groups of investors can be complicated, particularly when they’re coming from multiple entities. Sending documents to numerous investors can also be a tedious and costly process. Conversely, RealtyeVest Marketplace instantaneously pushes tens of thousands of emails through digital marketing to investors and tracks results in real time with its custom dashboard.

Find out more information at https://www.realtyevest.com

About RealtyeVest

RealtyeVest is an online marketplace that connects investors and sponsors (real estate owner-operators) to crowdfund exclusive real estate investments. Real Estate is the primary focus of our company’s platform and technology is the instrument we use to disseminate investment opportunities. Our platform allows RealtyeVest members to browse, research and make informed investment decisions on exclusive real estate offers. Find out more information at https://www.realtyevest.com

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The Truths Behind Crowdsourcing Technologies

The not-so-far-fetched science-fiction series, Wisdom of the Crowd exploits the most sensational benefits of real-time crowdsourcing platforms like RealtyeVest and draws parallels to the ridiculous, cringe-worthy fantasy world of The Circle, starring Tom Hanks and Emma Watson.  In an industry like online real estate crowdfunding, where privacy can cost thousands upon thousands of dollars, the notion of people willingly relinquishing their data to go wild goose chasing and risking their lives seems contradictory of the ongoing battle for online privacy battles fought by men like Edward Snowden and backed by the majority of the nation. (And, frankly, the idea sounds a bit reminiscent of a little 2016 fad known as Pokémon Go, which seemingly dropped off the face of the earth as quickly as it appeared.)

Raising capital: Old school vs New school

“Dialing for dollars,” a phrase used by real estate investment firms trying to get capital raised for their deals. It usually lasts from opening to the close of business every day, and would go on until the deal closed. That’s how it was done in the 20th century. Old school. In the 21st, where technology is a driving force, it’s all about making things easier, and that includes raising capital.

Real estate investment firms all over the country are acquiring properties and turning them into profit. However, this is no easy feat. A lot goes into raising capital for a deal. Today, real estate sponsors will target an acquisition. Once the firm comes across an acquisition, a Letter of Intent (LOI) is drawn up, which is an agreement between the sponsor and the seller outlining the price and terms. Once the LOI, and subsequently the Purchase and Sales Agreement (PSA) is signed, the process to raise capital begins.

First things first, a Private Placement Memorandum (PPM) is drafted by legal counsel which normally will take a month and $10,000-$20,000. This is followed by dialing for dollars.

To get started, one maybe two people with the firm sit down and look over an existing investor list and make warm-calls to investors advising them of a new opportunity. These firms in most cases, have a Reg D 506(b) exemption, which prohibits general solicitation of the real estate offering, and is only offered to friends, family and “existing” clients.

Not being able to reach out to new investors means relying on their existing network to support the project, which slows the success rate considerably. The firms can not advertise under the exemption, making it incredibly difficult to get the word out about a project.

Then, once these firms start to receive investments, managing investors and making distributions to investors or entire entities in multiple places is another ordeal.

It’s a long drawn out process just to get even a percentage of the funds raised for a new project, that in many cases result in success, but are costly and time-consuming. Fortunately, technological advances have served as a catalyst to launch a once formidable task into effortless achievement.

Step into the new school, now real estate firms have the option to manage their fundraising efforts from one location. Online platforms and accompanying software help sponsors manage investors and use promotional tools that will streamline a faster more consistent capital-raising process.

Sponsors who are formidably exhausted by the idea of “dialing for dollars” now have significant capabilities such as managing investor information, and sending documents electronically that allow for e-signatures. This eliminates the need to make constant phone calls and sending documents via snail mail. Contemporary methods of raising capital now include the use of accessible software that eliminates the need for sponsors to have to send documents and distributions to multiple places.

Additionally, modern technology allows for easier and faster communication. Sponsors can now issue correspondence and updates and communicate with investors via email and chat.

Keeping in mind that to be able to take full advantage of the software capabilities, sponsors need to be able to get new investors on board. That’s when promotional tools become an invaluable part of the process, as sponsors now have the ability to use a variety of multimedia applications to engage existing and prospective investors. Digital marketing now plays a huge roll in disseminating real-time data instantly to tens of thousands of investors with the click of a button.

Video, imagery, webinars, podcasts and the ability to share these things on social media are not only changing the way sponsors generate buzz about their projects with the goal of securing investment funds, but it’s also an extension of branding sponsors can take full advantage of.

In the past, much of the rate of success depended on the managing of many aspects of bringing a project to fruition. Now, sponsors can decide on one platform and utilize several digital marketing strategies and high level analytical tools to gauge investor’s interest in singular deals. This in turn, enables the sponsor to create better targeting and segmentation through email, syndication, and content marketing. Essentially, sponsors now have the option to build upon those old school practices by using available technology to improve their capital raising methods.

Click the following link to learn more about utilizing a commercial real estate investing platform.

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