Real Estate and Fintech Merge With Modiv

Some great news to open up with; Managing Editor of Commercial Real Estate Direct, Orest Mandzy, has kindly made the article they published last week on real estate crowdfunding from what had been premium paid content, to being available under their free subscription.

If you are not already subscribed on CRENews.com, head over there now, sign up and read the detailed article Orest wrote on real estate crowdfunding.You can find it right here.

PLUS, this week, I am super excited to share with you that I published another classic GowerCrowd podcast, and, OMG, you are going to find the conversation with Aaron Halfacre CEO at crowdfunding platform Modiv a true crowd pleaser. Listen in here to learn how you can invest, not only in real estate on their platform, Modiv, but in the platform itself – real estate investing with a fintech kicker. Nice.

New Crowdfunding Platform Deals

CrowdStreet has two new deals in the Houston area this week- City Vista and The Village at Waller. City Vista is a 404-unit multifamily property in an eminently walkable tony area of Houston set to undergo a full renovation, bringing it on par with new product in the region at discounted rental rates. It’s got a targeted investor IRR of 12.4%, a targeted equity multiple of 1.9x, a target investment period of 5 years and a targeted average cash yield of 4.4%. Investing for the project opened up this past Tuesday, August 31st. You can learn more about City Vista at CrowdStreet, here.

Also in Houston, and also by CrowdStreet, is The Village at Waller, a 118-unit build to rent project in Waller, Texas, situated just above Houston and located smack dab in the middle of several large employers, including the Daikin Technology Park, a 4.2 million sq ft corporate campus with lots of workers in need of quality housing. The Village at Waller has a targeted investor IRR of 18.2%, a 2.1x targeted equity multiple, targeted average cash yield of 8.1% and a targeted investment period of 5 years. Check out the spec sheet on CrowdStreet, here.

General Crowdfunding Industry News

With the dawning realization that COVID-19 is far from defeated in the United States, it’s more important than ever to understand the effects of the virus on the real estate markets and related policy changes that may take place in the next days, weeks, months, and potentially even years.

The fine folks over at Crowdfund Insider recently covered the past, current, and future effects of the pandemic with Roofstock CEO Gary Beasley in a discussion entitled “Real Estate, Property Investment During the Time of COVID.” A must listen/read for anyone interested in the unique opportunities and challenges presented by the pandemic for real estate crowdfunding investors.

Crowdfunding Platform Updates

One of the biggest stories to come out last week was crowdfunding platform Modiv’s conversion to a Regulation A+ offering, which we covered in a previous issue of the newsletter. One aspect of that change is the fact that Modiv will now be accessible to non-accredited investors, many of which have been left out of the recent boom in real estate crowdfunding due to the dearth of platforms offering options for “the little guy.” As the industry expands and crowdfunding grows as a sector, more and more retail investors want to benefit from the awesome potential of real estate crowdfunding, and companies like Modiv are looking to fill that niche in the marketplace. Read more about Modiv’s warm embrace of non-accredited investors at Yahoo Finance, here.

Real estate crowdfunding platform and private real estate lender Sharestates recently announced plans to expand their footprint across the US, and in the Southeast in particular in a conversation with Mortgage Professional America, Mark Martino, Sharestate’s Director of Business Development. Recently, Sharestates moved towards offering Private Regulation D deals in addition to Public Regulation A offerings, and like Modiv, is also exploring programs for non-accredited investors, which is in line with their stated mission of “bringing Wall Street deals to mainstream investors by creating a marketplace where they could access deals across the country.”

Learn more about their expansion plans at MPA Mag, here.

Finally, we’ll take a look at Nitya Capital, a relatively new entrant to the real estate crowdfunding space. On August 27th, 2021, the privately held real estate investment firm announced a record transaction volume of roughly $2.2 billion, delivering its strongest yearly results ever- this during a global pandemic and moribund economic picture. Currently, Nitya has delivered a realized IRR of 34.4% for investors alongside an equity multiple of 1.56x for investors- solid numbers by any measure. Learn more about their good year, here.

That’s it for this issue of the GowerCrowd Real Estate Crowdfunding Newsletter, but rest assured we’ll be paying attention to new developments and bringing them to your attention next week. See you then.