What elements do you think real estate crowdfunding platforms should offer? Here at Luxe Crowdfunding, our team of professionals are here to inform you of the best elements all real estate crowdfunding sites need to feature. Our expertise is available to everyone in the United States. 

 

Elements Platforms Should Offer

  • Executive Summary
  • Location
  • Photo Gallery
  • Investment Summary
    • Property description
      • Describes/includes where the property is located, when it was built, how large it is, any repairs it may need, and the current occupancy. 
    • Investment opportunity
      • Describes where the property is located, when it was built, the size, any repairs it may need, and current occupancy figures.
    • Purchase price
      • The exact price for which the property will be purchased.
    • Total capitalization
      • Price describing the total capital in debt and equity that will be raised for the all-in transaction.
    • Preferred return
      • The estimated preferred return, annually.
    • Projected returns
      • Estimations of IRR, net to investor members, and the multiple on invested capital.
    • manager/sponsor
      • The sponsor company that controls the investment entity.
    • Property/asset manager
      • Description of the asset manager.
    • Proposed structure
    • Distributions
      • This shows every year’s projected distributions and preferred returns. Include a description of the promote/waterfall structure.
    • Acquisition fee
      • Typically around 1%-2 of the purchase.
    • Management authority
      • Description of how the manager holds control over the management and affairs of the property (not granting any rights to alter the LLC agreement).
    • Proposed use of proceeds
      • What will you do with the investors’ capital? This should include acquiring the property, making repairs, maintaining the property, etc.
  • Estimated Sources and Uses
  • Loan Terms
    • Loan amount
      • What is the approximate loan amount and the percentage of the purchase price it makes up.
    • Borrower
      • Which entity will be borrowing and what kind of company it is.
    • Interest rate
      • What is the locked interest rate?
    • Term
      • How long is the term, and is it a fixed rate or variable rate?
    • Amortization 
      • Does amortization begin right away, or is there a period of interest-only servicing?
    • Collateral
      • What collateral does the lender have on the deal?
  • Competitive Set
    • This table depicts the competitors in your market, where you stand against them, and each competing property’s financial information.
  • Industry Overview
    • Every industry is different, whether residential, retail, or another niche. Briefly describe what the specific industry for your property type is like in today’s market. 
  • Market Overview
    • Similar to the industry overview, the market overview gives geographic-specific insight on the real estate market where your building is located. Include facts about the city, such as population and financial status in addition to real estate market performance.
  • Risk Factors
    • Every real estate deal has multiple risk factors. This section should include every risk related to the business, tax, accounting, and legality of the property. There are often 10 to 20+ risks, and each one should have its own paragraph description.
  • Investor Suitability
    • Real estate deals frequently receive support from accredited investors. This last section in the OM describes what types of investors the deal is suited for, and may be based on rules and regulations with regards to investor accreditation or general solicitation. These are the guidelines that concern the investors’ financial status and their ability to bear the risk of losing an investment.

 

Check Real Estate Crowdfunding Platforms!

Luxe Crowdfunding is an investment management platform engaged in private equity and alternative investments across a range of real estate asset class, including multifamily, senior housing, and storage.

 

Check Out Our Real Estate Crowdfunding Sites

Let us help you when it comes to real estate crowdfunding platforms. If you are interested in learning about property crowdfunding or even want some information on its advantages, be sure to call us today! We are one of the best crowdfunding sites that have advice on how to invest in real estate online. Here at Luxe Crowdfunding, we are entirely here for you. Our commercial real estate investing experts have the best expertise in the United States. We endeavor to excel in every service we provide, adding value for our investors wherever possible, and thereby succeeding nationally in the construction industry. We offer the best places to invest in real estate in the United States.