A Look at Some of the Dangers Involved in Crowdfunded Real Estate Investing

Hello GowerCrowders! I’ve got a lot in store for you this week, including several new deals like the Port 99 Industrial Park from CrowdStreet, the Spartan Investment Growth Fund, and the Simm Cap Wealth Fund. I’ve also got new updates from Crowdfund Insider about the launch of Homebase’s new NFT fractional real estate investment platform and a look at Yieldstreet’s new RIA partnership. As always we’ll look at our most recent deal data, which you can only find here at GowerCrowd, and a new podcast: The Dangers of Crowdfunded Real Estate Investing.

Let’s get into it.

New Crowdfunding Platform Deals

The Port 99 Industrial Park is a new investment opportunity hosted on CrowdStreet. The project is for a development of a Class-A distribution center in the fastest-growing mega-region in the US, close to the International Port of Texas. Once complete, the property will offer valuable access to rail, lines, shipping terminals, and major freeways- allowing goods to travel freely from Port 99 to all corners of the US- and the world. 

Invest in Port 99 on CrowdStreet, here.

The Spartan Storage Growth Fund is a $45 million fund open to accredited investors looking to deploy capital in opportunistic self-storage in markets across the United States. The fund purchases well-vetted ground-up development as well as lease-up investment opportunities. They typically seek out underperforming self-storage, with more than 40,000 net rentable SF, often in high-growth markets. 

Learn more about the Spartan Storage Growth Fund here.

The Simm Capital Wealth Fund is an investment opportunity focused on Class B and C+ multifamily family assets. The fund acquires existing multifamily properties in high-growth markets with demonstrated increases in population and other positive demographic characteristics. The fund has a minimum investment of $100,000, a targeted equity multiple of 2.5-3x, a preferred dividend of 8%, and a target cash-on-cash of 15-18%. 

Check out the SIMM Cap Wealth Fund, here.

General Crowdfunding Industry News

Homebase is the latest platform to enter into the non-fungible token scene, with the company launching fractional real estate investment offerings via NFT. Using cryptocurrency Solana, Homebase allows investors to generate returns from rental properties- starting at low as $100. Returns are paid via the stablecoin USDC. Get the rest of the scoop on Crowdfund Insider, here.

Crowdfunding Platform Updates

Crowdfunding platform YieldStreet recently announced a new RIA partnership with Kubhera Wealth Management, joining the direct-to-consumer real estate platform as its first registered investment advisor (RIA) partner. Kubhera clients can now diversify their portfolios with alternative assets like real estate, art venture capital, private equity, and more. 

The move comes on the heels of a record-breaking year for YieldStreet and gives Kubhera’s 300+ clients the opportunity to diversify their portfolios with private asset classes. Learn more at Crowdfund Insider, here.

SEC Filings Graphs

We saw a steep decline in the total amount of funds raised (tracked via GowerCrowd’s exclusive SEC Filing Report Data), with the total amount dropping significantly from Week 7 to Week 8. The total amount raised in Week 8 was $0.25 billion, down from $1.02 billion last week. The total number of deals actually fell as well, from 29 total deals in Week 7 to 21 deals in Week 8. 

Interestingly, Nevada made the top of the list of states by dollars raised, with $0.09 billion, while Week 7’s winner, Oregon, fell to 5th place with $0.01 billion. If you want to see the top five states by number of deals or dollars raised, click this link to access Week 8 SEC Filing Data– only available here at GowerCrowd.

Multimedia Links (Videos, Podcasts, etc.)

We’ll finish things off with a new podcast from Multifamily Made Simple, Episode 346: The Dangers of Crowdfunded Real Estate Investing. In this episode, hosts Anthony Vicino and Dan Krueger of Invictus Capital discuss some of the pitfalls involved with crowdfunded real estate- and a look at why many offerings are only offered to accredited investors. 

This podcast is a must-listen for anyone on the fence about crowdfunded real estate- as research and due diligence are fundamental to a good real estate crowdfunding investment strategy. Listen for yourself on Listen Notes, here.

That’s it for this week- but I’ll see you next week with lots more new deals, news stories, platform updates, podcasts, and so much more. Ciao!