Why Fundrise thinks this is just the beginning of the inflation crisis
We’re back with your weekly dose of news, updates, multimedia options, and everything you might have missed last week in the real estate crowdfunding space. We’ve got two new deals from RealtyMogul, including a Fort Worth multifamily property with a target IRR of 20.2%, the Tides on Oakland Hills Apartments. We’ll also cover a New High Target IRR Development Opportunity – Dobson Station, a Mesa, Arizona, multifamily property, also on offer at RealtyMogul.
In general news, we’re going to examine a piece from Moneywise that looks at some of the risks involved in regulation crowdfunding– because it is important to view the space with an impartial eye. If you want to be successful, that is. We will also cover a recent post by Fundrise that looks at real estate, crowdfunding, inflation, and how investors can leverage property investments to beat or exceed inflation. Finally, join us as we take a listen to a podcast that looks at how crowdfunding sponsors can raise their first million, brought to us by the crowdfunding experts at IndieGogo.
Let’s get into it.
New Crowdfunding Platform Deals
The Tides on Oakland Hills is a Fort Worth multifamily project up for offer on RealtyMogul. The sponsor, Tides Equities, is currently under contract to purchase the 274-unit property, which they describe as having “immense value-add potential.” Tides Equities describes the current management of the property as excellent, with solid upkeep and maintenance, but they also believe that the property has the opportunity to benefit from significant value-add upside via an effective strategic renovation.
In addition, they believe that the addition of improved management practices and capture of loss-to-lease on current rents will help drive serious returns for the project. The project currently has a target IRR of 20.2%, a target equity multiple of 1.44x, an estimated hold period of 2 years, and an estimated first distribution in July 2024. Check it out for yourself on RealtyMogul, here.
Next up is another multifamily property with a solid 23.2% target IRR, Dobson Station in Mesa, Arizona. The sponsor, Starpoint Properties, is currently accepting equity commitments for the 245-unit multifamily project that sits in the heart of Mesa. The site itself sits in an infill location, close to amenities, services, and a high-traffic count intersection. It’s also well situated when it comes to public transit and other transportation infrastructure, sitting within walking distance to Downtown Tempe’s light rail system, and 2 miles away from the 60, 101, and 202 highways, giving residents quick access to the Greater Phoenix MSA. Read more about Dobson Station on RealtyMogul, here.
General Crowdfunding Industry News
Here at the newsletter, we’re ardent fans of real estate crowdfunding, and its awesome power to create communities, beautify areas, and generate excellent returns for savvy investors. However, it’s always good to get outside of your bubble and look at any investment with fresh eyes- no matter how much it has going for it. This post on Moneywise, written by staff writer Clayton Jarvis, looks at some of the potential pitfalls, pros, and cons that you might find as a new investor in a crowdfunding offering- whether you’re looking at a Mesa multifamily property or a tech startup in San Jose. Learn more at Moneywise, here.
Crowdfunding Platform Updates
Inflation is on the mind of every serious investor in the country. While many of us do not remember the dark days of the 1970s and 80s stagflation crisis, we can already see the effects of inflation on the prices of everyday staples like food and gas, as well as the continuing growth in rents and home and property valuations. In a recent post to their blog, the fine folks at Fundrise take a deep dive into our current inflationary crisis.
They use plenty of infographics and written documentation to back up their contention- which is that we are just seeing the beginning of inflation-related issues and that investors need to consider at least adding some real estate in their portfolios to remain protected against inflationary pressures. Give it a read on your own at Fundrise, here.
Multimedia Links (Videos, Podcasts, etc.)
Finally, we’re going to cover a podcast from IndieGogo, Ep 44 – Crowdfunding Agency Tips From Launchboom on How to Raise $1M. In this podcast, Kevin Liang, the Product Launch Director of Launchboom, explains his strategies for creating a successful capital raise, from beginning to end. He extolls the virtues of data-driven, proprietary processes that can help you elevate your campaign to the highest levels- whether you’re trying to get funding off the ground for a commercial property, or launching the latest, greatest real estate fintech startup. Listen for yourself at Listen Notes, here.
That’s it for now- but don’t worry! We’ll see you next week with plenty more real estate podcasts, news, platform updates, and much more! See you then.
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