PALO ALTO, CA—As GlobeSt.com just exclusively reported, Pyatt Broadmark has presented a new investment opportunity in connection with the Pacific Northwest Lending Fund. The offering will be facilitated by online real estate platform RealCrowd. In an update to that article, GlobeSt.com chats with Roman Rosario, co-founder of RealCrowd, on the market and where he expects the online syndication and crowdfunding space to go in 2015.
“We are seeing a more educated real estate investor participate in online CRE investing and the less experienced investors are taking the time to educate themselves—Our investor content (ebooks etc) has seen thousands of downloads,” he explains. He also notes that “The average investment that an investor makes per deal is going up—Whereas our previous average was approximately $70,000 per investor's investment, more recent offerings are closer to $90,000 and $100,000 per investor's investment.”
A number of factors contribute to this, he explains, some of which are trust, track record, and transaction flow.
“Our average investors' net worth is just under $9 million and we are seeing that increase as well as high net worth, ultra high net worth and family offices show continued interest in investing in real estate directly with no fees and full control as to how they allocate their investments.”
In addition, he pointed out that there is more institutional real estate operator interest in the online syndication/crowdfunding space. “We were at ULI NYC and met with operators that have done billions of dollars in transactions that have committed to using the platform.” The biggest of the big names (which he couldn't reveal) “are starting to show real interest.”
As for what is to come in 2015, Rosario tells GlobeSt.com that “We should start seeing more high profile deals hit the markets in 2015. Deals that can truly take advantage of general solicitation.”
According to Rosario, “operators have been interested in other ways to access investors/equity, but more importantly we have seen them just as interested or more interested in integrating technology to their platform and increase their capabilities. They like the ability to focus on the real estate, not the fundraise.”
He adds that “the online syndication and crowdfunding space will become mainstream in 2015.”
His prediction is that the online CRE syndication/crowdfunding industry will be raising $10 million a month by next year and it has the potential to be the fastest industry to reach $100 million raised in a month.
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Natalie Dolce
Natalie Dolce, editor-in-chief of GlobeSt.com and GlobeSt. Real Estate Forum, is responsible for working with editorial staff, freelancers and senior management to help plan the overarching vision that encompasses GlobeSt.com, including short-term and long-term goals for the website, how content integrates through the company’s other product lines and the overall quality of content. Previously she served as national executive editor and editor of the West Coast region for GlobeSt.com and Real Estate Forum, and was responsible for coverage of news and information pertaining to that vital real estate region. Prior to moving out to the Southern California office, she was Northeast bureau chief, covering New York City for GlobeSt.com. Her background includes a stint at InStyle Magazine, and as managing editor with New York Press, an alternative weekly New York City paper. In her career, she has also covered a variety of beats for M magazine, Arthur Frommer's Budget Travel, FashionLedge.com, and Co-Ed magazine. Dolce has also freelanced for a number of publications, including MSNBC.com and Museums New York magazine.
