Student housing development shatters crowdfunding record.

This week, we’ve got a wealth of real estate crowdfunding information for your reading pleasure. We’ll start off with a look at CrowdStreet’s Dallas’s Legacy Center, a 95% occupied office building in the city’s desirable Legacy submarket. After that, we’ll cover a RealtyMogul self-storage portfolio with properties in LA and TX with an 18.1% IRR and 7% cash-on-hand. 

We will then look at the phenomenal success of NYCE, a fintech firm that recently hit its third real estate crowdfunding record during a raise for Temple II, a tech-powered student housing development near Temple University– a deal that we brought to you earlier in the year. Finally, we’ll finish things up with a platform update from Fundrise and a podcast that covers how you can get started on the road to being a full-time passive cash flow real estate investor, partially by leveraging the awesome power of real estate crowdfunding. Let’s get into it. 

New Crowdfunding Platform Deals

CrowdStreet has a new deal available, the Legacy Center, a 95% occupied office building that sits in Dallas’s coveted Legacy submarket. This neighborhood is a center of commerce for the city, with several big-name Fortune 500 companies setting up a presence in the area, including Liberty Mutual, JP Morgan, and Toyota. This deal is special for several reasons, including the fact that it is a high cash flow asset with favorable debt terms, its off-market transaction status which helps lead to advantageous pricing, and the limited/minimal capital improvements expected due to its new construction status. It has a targeted investor IRR of 15.6%, a targeted equity multiple of 1.9x, and a targeted average cash yield of 8.1%. Check it out on CrowdStreet, here.

Next up is an LA/TX Self-Storage Portfolio now open for funding at RealtyMogul. The project consists of two newly constructed, fully climate-controlled Class A self-storage assets in Houston, Texas, and Metairie, LA. Both properties are located in affluent suburbs with strong and growing demand for self-storage units. Another plus is the fact that both assets are cash-flow positive from day one over the project’s current 3.3% fixed interest-only loan. The deal has a target IRR of 18.1%, a target cash on cash of 7%, and a target equity multiple of 1.71x. You can find it on RealtyMogul, here

General Crowdfunding Industry News

Benzinga recently covered the fantastic progress of NYCE, a real estate investing fintech firm that recently achieved a new crowdfunding record during its raise for Temple II, which is comprised of Phase II and Phase III of a 105-unit tech-powered student housing development that was developed in partnership with Temple University. The firm bills itself as “the Robinhood of real estate investing” which a large focus on giving micro-investors the opportunity to invest in crowdfunded real estate projects. This new milestone marks the third time the firm has broken a crowdfunding record using both Republic and Wefunder. Read more at Benzinga, here.

Crowdfunding Platform Updates

It’s a troubling time in the markets, with many observers pointing to a potential global slowdown on the horizon. However, despite fears regarding higher interest rates, the real estate crowdfunding space appears to be just not surviving, but thriving during this time of economic unease. This steadfastness can be seen in the latest report from Fundrise, which reported an aggregate return of 3.49% over the first three months of 2022, which is excellent compared to the same 3 month numbers for REITs, which came in at -5.27% and the S&P 500 which came in at -4.60% over the first three months of the year. 

Keep in mind that past performance is no guarantee of future returns, but it does seem like the space is weathering our current economic tides relatively well compared to the competition. For a more in-depth look at Fundrise’s first three months of the year, check out this article on Crowdund Insider.

Multimedia Links (Videos, Podcasts, etc.)

We’ll finish off things with a new podcast from Real Estate Investing Abundance with host Jeremy Roll. This podcast takes an in-depth look at how investors can quit their day jobs and become full-time passive cash flow investors, often by utilizing real estate crowdfunding projects to generate steady income from distributions and property appreciation. The host takes a look at the myriad benefits offered by the space, including tax advantages, appreciation, portfolio diversification, and more. Give it a listen on Listen Notes, here

That’s all folks! See you next week with even more real estate crowdfunding stories, updates, podcasts, and more. Ciao.

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