LOS ANGELES—In a special session titled: “Navigating Crowdfunding for your Real Estate Deal” at the recent RealShare Apartments conference here, panelists talked about how funding multifamily development and initial business start-ups from the crowd is becoming more than a popular alternative to traditional equity and debt offerings.
“Everyone has a need for capital. If you aren't raising money online, you will,” said Scott Purcell, CEO of FundAmerica.
And while this alternative promises simplicity and speed, panelists say, it is not without constraints. “Just make sure you are doing it with all the right compliance and regulations,” Purcell said. “It doesn't take much, but do it right.”
Switching gears, moderator Jillian Sidoti Esq., partner of Trowbridge Taylor Sidoti LLP, asked how people coming to a crowdfunding platform should prepare. Panelist AdaPia d'Errico, chief marketing officer at Patch of Land, said that her platform is really looking for entrepreneurs looking to diversify their portfolio. “Come with all the basic documents that you would have for any other lender,” she said. “You may have identified the property or own it already.”
Elizabeth Braman, chief production officer at Realty Mogul, said that if it is a debt project, the lender package would be sufficient but “it really depends on what stage you want to get the loan request to,” she said. “The two things I ask for is the model and offering memorandum.”
Braman added that “We really want our sponsors to tell us about the return aspect. They need to take into consideration what they would be offering to our investors.”
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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.
