Don’t Miss CrowdStreet’s Multifamily Opportunity Fund III Webinar Coming Soon

Hello GowerCrowders! As school starts, and Q3 wraps up, we’re proud to bring you even more of the real estate crowdfunding-related news stories you love.

This week, we’ve got a lot in store for you, including a new fund on CrowdStreet, the Trion Multifamily Opportunity Fund III, and a new AcreTrader deal that’s now open for funding, the Frontier Farm Redwood County, Minnesota. We’ll also take a bird’s eye view of the market and look at what investors can do during a downturn with a new piece at Inman, and new charges brought by the SEC against a real estate firm and its principal. 

As an investor, you’re probably well aware of the steep decline in equities, real estate price growth, real estate stocks, and other bellwethers of a slowing economy. We’ll also look at CrowdStreet’s C-REIT quarterly investor update, and a new podcast from HoneyBricks.

Let’s get into it.

New Crowdfunding Platform Deals

CrowdStreet’s Multifamily Opportunity Fund III is now open for investment. The fund’s sponsor, Trion Properties, is an old hat in the RE crowdfunding world, completing 49 round trips on 49 different projects since their founding in 2007. 

As you can probably tell by the name, this is not Trion’s first rodeo with a multifamily fund, and Trion Multifamily Opportunity Funds 1 and 2 have seen significant success, with all Fund II properties either meeting or exceeding investment projections. Invest or learn more about the fund on CrowdStreet, here.

Next up is another farmland deal from the fine folks at AcreTrader. The Frontier Farm is a 145-acre soybean and corn farm in Redwood County, Minnesota. It sits in one of the most fertile regions in the American Midwest, with more than half a million acres of nearby cropland- 90% of which is made up of corn and soybean production.

The farm itself has an excellent productive soil profile, with a CPI or “Crop Productivity Index of 93.1/100. This is significantly higher than the county average of 86. The total farm price is $1,574,700, with an estimated ownership duration of 5-10 years and a minimum investment of $16,290. Check it out on AcreTrader, here.

General Crowdfunding Industry News

It’s pretty obvious that the real estate industry is in a state of flux, largely as a result of the record growth during the pandemic. After all, what goes up, must come down. In this piece, Inman takes a high-level look at the current market shifts, and how you, as an investor, can still find deals– including in the RE crowdfunding space. They go into great detail on how you can survive, and even thrive during a housing and CRE recession. Read it for yourself on Inman, here.

The SEC recently announced charges against California-based Secure Income Group, as well as its owner and president Max McDermott and investor relations rep Stacey Porter. The firm is accused of misleading investors about the nature of the underlying properties they would be investing in, as well as their lien positions on the deal. Additionally, the firm sold off millions of dollars of loans and corresponding security interests- without informing investors. 

The SEC filed a complaint with the Central District of California charging SIG and McDermott with violations of the securities registration requirements of Sections 5(a) and 5(c) of the Securities Act of 1933 and the antifraud provisions of Section 17(a) of the Securities Act and Section 10(b) of the Securities Exchange Act of 1934 and Rule 10b-5 thereunder. Read more straight from the horse’s mouth at SEC.gov, here.

Crowdfunding Platform Updates

CrowdStreet recently announced a webinar to discuss their Q4 REIT I (“C-REIT”) Quarterly Update. In the webinar, scheduled for December 15, 2022, they plan to discuss its current positioning, any relevant new deals in the portfolio, and they’ll also discuss their current outlook on the market. 

If you don’t recall, CrowdStreet’s C-Reit gives investors easy access to a portfolio of 20-25 growth-oriented private commercial real estate projects, from multiple sponsors, through a single fund managed by CrowdStreet. Register for the webinar on CrowdStreet, here.

Multimedia Links (Videos, Podcasts, etc.)

Last, but certainly not least, we have a new podcast from Honeybricks that looks at the wide world of tokenized real estate investing. This DLP and crypto-related ownership transfer method is perfectly poised to make a big splash in the crowdfunding world, with smart contracts that automatically exercise ownership options and a wealth of tracking tools to manage your investment. Listen and learn more about tokenized real estate investing with HoneyBricks, here.

That’s all for now- but we’ll see you next week with lots more real estate crowdfunding news, stories, podcasts, and more. Ciao!