Q1 Update on the crowdfunding industry

Welcome back GowerCrowders! We’ve got a lot in store for you this week. We’ll open with a 213-Key Marriott Tribute-Branded Hotel Near Popular Old Town Scottsdale from CrowdStreet as well as a New Farm Offering over at AcreTrader, the Fremont Lake Farm. We’ll go on to look at an update from Crowdfund Insider that takes a high-level look at the Crowdfunding space in 2022, and examines why the total number of crowdfunding platforms has seemed to stabilize over the recent past. 

After, we will check out a platform update on Fundrise looking at how crowdfunding investors can leverage the awesome power of compound interest to secure their financial future. We’ll finish off with a look at some crowdfunding-related media, including a new podcast you can find over at Listen Notes, Hotel Buying and Crowdfunding Real Estate with Mark Gonneau and David Atwell.

New Crowdfunding Platform Deals

The Hotel Adeline Scottsdale, Marriott Tribute project is a recapitalization of a 213-key Marriott Tribute-branded hotel that sits just north of bustling Old Town Scottsdale. The property has undergone extensive renovation and has been transformed into a stylish boutique hotel after a $13M renovation. The sponsor, ESI Ventures, has over $700 million in total market capitalization experience and a long track record within the hotel sector. This hospitality property has a targeted investor IRR of 20.1%, a targeted equity multiple of 1.7x, a targeted average cash yield of 5.6%, and a 3-year targeted investment period. It goes live for investment on April 19th on CrowdStreet, right here.

AcreTrader also has a deal that will be open for funding on April 19th, the Fremont Lake Farm. It is a 995-acre mixed vegetable and corn farm located in Newaygo and Wexford Counties in Michigan. It sits in a strong farming region with a deep tenant base that includes more than 2,000 food producers within the two counties where the farm is located. The deal has an estimated ownership duration of 5-10 years, a gross cash yield of 4.2%, a net cash yield of 2.8%, and a net annual return of 8.7%. It goes live on Tuesday, April 19th on AcreTrader. 

General Crowdfunding Industry News

At the beginning of the year, Crowdfund Insider released a report chronicling the growth of FINRA-regulated funding portals. These entities are designed to issue securities under regulation crowdfunding, a securities exemption that was created as a result of the JOBS Act. That report noted there were 70 approved funding portals- a number that has not changed much- growing to just 71 portals as of today. This article takes a look at some of the underlying factors contributing to this growth rate, as well as where we might find ourselves in the near term as far as growth in FINRA-regulated crowdfunding portal numbers. Keep in mind that these numbers include all forms of crowdfunding, not just real estate. Check it out at Crowdfund Insider, here.

Crowdfunding Platform Updates

On to an update from Fundrise entitled, “Want financial freedom? Respect the power of compound growth.” This blog post from Fundrise looks at the reasons why compound interest is so powerful on a high level, and also how it pertains to their business and real estate crowdfunding as a whole. They look at factors like the value of time, how private real estate can be an excellent asset for compounding, and how Fundrise itself functions to increase investor compound potential. Check it out on the Fundrise Blog, here.

Multimedia Links (Videos, Podcasts, etc.)

Finally, we’ll leave you with two podcasts that you can listen to on the way to work, at the gym, or wherever you happen to be with some time on your hands. The first, Hotel Buying and Crowdfunding Real Estate with Mark Gonneau and David Atwell, is a conversation between the two real estate professionals on how they buy hotels and either convert them into multifamily units or operate them as smart hotels- leading to immaculate BRRRRs and massive profit. They go into depth on how investors can structure projects for maximum flexibility and financial potential, as well as how to cut operating costs and delegate hospitality management duties. It’s an incredibly interesting look at a sector that seems to be bouncing back from pandemic lows. Check it out on Listen Notes, here. 

That’s it for this week- but we’ll see you next time. Adieu!