Is non-accredited investing the future of regulation CF?

Hello GowerCrowders! It’s been a wild ride over the past week or so, with the third largest bank failure in US history, FDIC intervention on behalf of depositors, and as of the writing of this article, a bounce back for banks and crypto.

The real estate crowdfunding world was just as busy, with new deals from EquityMultiple (Foundations Portfolio – Growth I), CalTier (CalTier Realty Fund) and Re-viv (27% on Equity Invested Passive Multifamily).

We’ll look at a recent article from Wealth Management, covering the rapid-fire growth of regulation crowdfunding opportunities for non-accredited investors, and detail recent reports that Roofstock exceeded $100 billion in assets tracked- and is launching a new property management service.

Afterwards, we will mine GowerCrowd’s exclusive SEC Filing Data for insights, and cover a brand new podcast from my show, The Real Estate Crowdfunding Show, where I speak with Glenn Mueller, Academic Director at the Family Office Real Estate Institute.

Let’s get into it.

New Crowdfunding Platform Deals

Our first deal is the Foundations Portfolio from EquityMultiple. The Foundations Portfolio Growth I gives investors the opportunity for growth-focused diversification across asset classes and geography. Participants can access streamlined EM-vetted offerings, all tied up by a low investment minimum. Check it out at EquityMultiple, here.

Next up is the CalTier Realty Fund, a fund that aims to take advantage of the shortage of 3 million rental units. CalTier believes that multifamily real estate is likely to remain one of the best performing asset classes over the next decade. They’re offering investors the opportunity to generate income from multifamily properties via the CalTier Realty Fund.

Rounding out our deals, let’s examine a new Re-viv deal, another multifamily option. As a refresher: Re-viv boasts a 27% IRR, has placed over $2 million in equity to date, raised $2 million in private debt, and holds 28k square feet under management. Check out their latest deal, here.

General Crowdfunding Industry News

More and more asset managers, deal sponsors, and investment platforms are seeking out non-accredited investors to fund private real estate assets. This is indicated by the rise of several non-accredited outfits, including Open Tribes, Neighborhood Ventures, and Reg A+ debt funds from Red Oak Capital Holdings. This article goes into detail about the rise of non-accredited investors in the regulation crowdfunding space- a great read if you’re non-accredited and looking to leverage private real estate assets to secure your financial future.

Crowdfunding Platform Updates

Fintech firm and crowdfunding platform Roofstock recently reached a major milestone, with the company reporting it has now exceeded $100 billion in assets tracked. In the same announcement, Roofstock presented a new service: Stressa Pro- a subscription service that includes advanced tools for real estate investors, automating account requirements and sending a tax package directly to your accountant. 

Stressa Pro also uses machine learning and automation to categorize, organize, and record deductions in close to real time. It costs $16 a month to use and has direct integration with lenders, banks, and property managers. Learn more about Stressa Pro and Roofstock’s latest achievement on Crowdfund Insider, here.

SEC Filings Graphs

Per GowerCrowd’s exclusive SEC filing data, the total amount raised for Reg D (b) and Reg D (c) deals dropped last month, with Week 9 posting a total amount raised of $0.87, and Week 10 posting a total amount raised of $0.52 billion. California remained both the top state for number of deals and dollars raised in both Week 9 and Week 10. 

Additionally, the number of small deals outpaced all other sizes in both Week 9 and Week 10, with 11 small deals in Week 9 and 14 small deals in Week 10. Get the rest of our GowerCrowd-only data on this page, here.

Multimedia Links (Videos, Podcasts, etc.)

We’re going to finish things off with coverage of my latest episode of “The Real Estate Crowdfunding Show.” On this week’s episode, I speak with Glenn Mueller, the Academic Director of the Family Office Real Estate Institute. I’ve known Prof. Mueller for several years, and interviewed him when I first got into the podcasting game. 

I’m a fan of his Market Cycle Report, which is an analysis of where the commercial real estate markets stand today, and his predictions of where the market will be through the rest of the year. He reviews the state of the market by both asset class and location- so whether you’re a sponsor looking for buying opportunities, or an investor seeking syndications, this podcast lays out a roadmap for the year ahead. Give it a listen on GowerCrowd, here.

That’s it for now- but I’ll see you soon with even more real estate crowdfunding news, new deals, platform updates, podcasts, and more! Until then!