Why “Dr. Doom” thinks US commercial real estate is on the verge of a massive slowdown.
Happy November, GowerCrowders! We’re back with your daily dose of new real estate crowdfunding deals, platform updates, crowdfunding podcasts, and industry news. This week, we’re going to check out CrowdStreet’s new general partner fund. We’ll also examine a now-open high target IRR self-storage development opportunity from RealtyMogul and have a look at Cadre’s recently released list of Most Valuable Places to Invest.
After, we’ll take a look at Crowdstreet’s effort to boost interest in alternative investments and help you find a few new podcasts to add to your list, including an episode of the Intrinsic Drive Podcast, Small Change: Big Impact with Eve Picker and a discussion with Dr. Adam Gower and John Drachman, Co-Found of the Waterford Property Company.
Let’s get into it.
New Crowdfunding Platform Deals
We’re going to start off with a webinar for CrowdStreet’s new General Partner Fund. On November 2nd, 2022, several company officers, including CrowdStreet’s Chief Investment Officer Ian Formigle and Thomas McDonald from the Investment Committee, will participate in a discussion and explanatory session for CrowdStreet’s General Partner Fund.
This new CS fund gives investors the opportunity to earn enhanced returns with strong project performance by investing in tandem with sponsors of opportunistic projects. It’s got a target investor IRR of 20-22%, a target equity multiple of 2.1z-2.5x, a minimum investment of $100,000, and a targeted hold period of 3-7 years. Register for the webinar on CrowdStreet, here.
We’ve also got a new update for a project we’ve covered in the past, RealtyMogul’s Montgomery Self-Storage, which is now open for funding. As a quick refresher, this NY self-storage property offers investors a 20.2% target IRR, a 2.06x target equity multiple, with a minimum investment of $35,000 and an estimated hold period of 4 years. Check it out at RealtyMogul, here.
General Crowdfunding Industry News
Big Apple-based Cadre recently released its list of Most Valuable Places to Invest. The firm, founded in 2014 by Ryan Williams, is a RE fintech startup that offers investors heightened access to commercial real estate investments. Cadre named several high-growth US real estate markets in their new report, dubbing them “the most valuable places to invest for commercial real estate investors. They analyzed historical returns, 2-year growth, and liquidity potential for each individual market.
Want to find out which 5 markets made the list? Head over to MarketWatch to find out.
Crowdfunding Platform Updates
According to a recently released report from Crowdfund Insider, real estate crowdfunding platform CrowdStreet is taking steps to generate interest in alternative investments via its wholly owned offshoot of the investment platform, CrowdStreet Advisors. This offshoot is dedicated to promoting private investment opportunities by working in concert with financial advisors that want to help clients create better portfolios through diversification.
According to data released by CS at the end of September 2022, CrowdStreet Advisors had $431 million in assets under management across 25 private funds and individual accounts. Learn more from company CEO Tore Steen and CrowdStreet Advisors President Sheldon Chang here.
Multimedia Links (Videos, Podcasts, etc.)
We’ll finish with a look at two new RE-crowdfunding podcasts.
First up is a new episode from the Intrinsic Drive Podcast, Small Change Big Impact with Eve Picker. In this episode, Eve Picker, founder and CEO of Small Change shares her wisdom and insight regarding community development, how cities work, and the current trajectory of the real estate crowdfunding space.
Her story is compelling- she got her start in real estate by opposing the demolition of a nearby historic home- got hooked, and is now a leader at one of the more promising fintech startups in the real estate space. Stream or download the podcast and learn from her experience on Listen Notes here.
Finally, we’ve got a new episode of The Real Estate Crowdfunding Show. This week, John Drachman, Co-Founder of Waterford Property Company, speaks with our very own Dr. Adam Gower. Drachman is known in real estate circles as “Dr. Doom” due to his pessimistic take on where we’re headed with the current economy and not-so-rosy analysis of the fundamental problems facing the American real estate markets and the broader economy.
If you’re one of the millions of real estate investors worried about the future of the market- and your investments- it’s probably a good idea to see what he has to say- even if you think we’re headed for a roaring bull market. Dr. Gower also addresses several of our challenges in a well-shared LinkedIn Post. To see what Dr. Doom has to say, head over to Listen Notes– it might just save your portfolio.
That’s all for this week- but keep calm and carry on- we’ll be back next week with more of your favorite news stories, podcasts, new crowdfunding deals, and more! Ciao!
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