Which POTUS Made a Surprise Appearance at a Real Estate Crowdfunding Conference?

We’re well into spring in many parts of the country, and things are also heating up in the real estate crowdfunding space. For the last issue of the newsletter in March 2022, we’re going to cover the Jupiter Farm, a Minnesota farm offering from AcreTrader, and a New Jersey medical office portfolio over at CrowdStreet. We’ll also look at former POTUS Trump’s special appearance at star investor Grant Cardone’s annual 10X Growth Conference, and a look at new recommendations from the SEC regarding the accredited investor standards covered right here at GowerCrowd. We’ll finish off with a look at Modiv’s release of fourth-quarter and full-year 2021 financial results.

New Crowdfunding Platform Deals

The Jupiter Farm is 656-acre corn, soybean, and wheat farm located in Kittson County, Minnesota, a quick jaunt south of the border with Canada. Kittson County itself is one of the strongest farming regions in the United States, with 800 registered producers covering more than 400,000 acres. The total farm price for the Jupiter Farm is $2,437,099, which represents almost 657 acres with a price per acre of $3,170. The deal has an estimated ownership duration of 5-10 years, a gross cash yield of 3.2%, a net cash yield of 2.1%, and a net annual return of 8%. Check it out on AcreTrader, here. 

As the Baby Boomers and even some Gen X’ers age and start to look at retirement it is likely we’re going to see a tremendous boom in the need for medical care and medical services. With that in mind, investors might want to take advantage of this upcoming boom by investing in medical real estate- like the CAN Community Health Clinic, a single-tenant MOB facility in Denville, NJ under a 14.5-year triple-net lease. 

This facility provides life-saving and sustaining drugs and services to patients and is located in an established and growing city in New Jersey. It’s got a targeted investor IRR of 12%, a targeted equity multiple of 1.4x, a targeted average cash yield of 7%, and a targeted investment period of 3 years. If you’re interested in owning a piece of a life-saving medical facility, head over to CrowdStreet, here. 

General Crowdfunding Industry News

In a not-so-surprising surprise appearance, former President Donald Trump recently showed up at superstar investor Grant Cardone’s annual 10X Growth Conference in Miami, Florida, not so far from where the 1-term president spends time in Mar-a-Lago. Since losing to President Joe Biden in 2020, Trump has made regular appearances at various gatherings and continues to be the prospective front-runner for the GOP nomination, followed closely by Florida Governor Ron DeSantis. Cardone is a social media influencer and prominent real estate crowdfunding evangelist, and his 10X conference is among the most anticipated in the space each year. If you’re interested in why Trump made an appearance at the conference, head over to The Real Deal, which has an excellent overview of his appearance that also looks at the broader factors at play in the Florida market and Palm Beach in particular. Read on, here.

In other news, the SEC recently delivered recommendations adopted by its Small Business Capital Formation Advisory Committee. In the meeting, the committee discussed how regulators define the term “accredited investor” and the challenges present in creating a workable definition of the term that both protects investors and allows for the least friction possible for businesses looking to raise capital via regulation crowdfunding methods. Check out a quick write-up on the meeting alongside direct links to related documents and press releases right here at GowerCrowd, here. 

Crowdfunding Platform Updates

Every investor worth their salt loves a good earnings report, and the real estate crowdfunding space is no exception. Last week, Modiv released its fourth-quarter and full-year 2021 financial results. Like many others in the industry, Modiv saw an excellent year, with fourth-quarter revenue of $7.9 million and full-year revenue of $36.2 million. It also saw fourth-quarter adjusted funds from operations of $2.4 million, which translates to $.32 per basic share and $.27 per diluted share, and full-year AFFO of $11.4 million or $1.51 per basic share and $1.30 per diluted share. 

The piece also covers Modiv Chief Executive Officer Aaron Halfacre’s response to the news as well as an in-depth looked the moves taken by the firm in the first quarter of 2022, including the investment of $77.3 million in two properties at very attractive weighted average cap rates. Check it out on Business Wire, here.

That’s it for March’s last issue of the newsletter- we’ll see you next week at the beginning of April with plenty more updates, new deals, and real estate crowdfunding news stories. See you then!