how sponsors can wisely choose a crowdfunding site and raise their full ask
TRANSCRIPT
Real Estate Financial Modeling, LLC
• Founded in 2009; based in Atlanta
• Financial projection software to deliver:
• clarity of vision for decision-making• better ability to sell investment stories• higher productivity
• Make analysis intuitive and elegant
2
The New Capital Landscape
• Sourcing capital is now potentially much easier due to crowdfunding’s legalization
4
8
…and many more coming…
US-focused Real Estate Crowdfunding Platforms – as of 5/20/15
Source: TimesRealtyNews.com
• All of these are START-UPS, and since this is an entirely new business, that means NONE have operated as a platform for more than 2 years…
9
How Do You Choose A Crowdfunding Platform?
• Think like a potential investor in your deal who hasn’t yet learned of your deal…
• Where do they want to shop?
10
How To Choose A Crowdfunding Platform
• A platform that has:
• Legitimacy and transparency
• Relatively deep selection of opportunities
• Attractive presentation/ease of navigation
• Viable business model
• Phone number to call
11
How To Choose A Crowdfunding Platform
• Get to know the principals
• Join the platform and experience the onboarding
• Find the list on our blog
13
How To Choose A Crowdfunding Platform
How To Position Your Ask To Sell Out
• Professional photography/renderings
• Property interior and exterior
• Your headshots
14
How To Position Your Ask To Sell Out
• Communicate your relevant track record
• Similar projects
• Lineage with a particular geography
15
How To Position Your Ask To Sell Out
• Disclose the identified risks
• Mitigation tactics
• Acceptance
16
How To Position Your Ask To Sell Out
• Why your property is the right investment choice
• Why not the property next door to it?
• Why not a similar property elsewhere?
17
How To Position Your Ask To Sell Out
• Include a list of frequently asked questions with answers
• Even better: include a way to contact you directly
18
How To Position Your Ask To Sell Out
• Present financial analysis in a clean, intuitive, crisp manner
• Consider the audience – accredited, but not necessarily CRE professional
20
How To Position Your Ask To Sell Out
• Show the investor prospect their projected returns
• Tailored to their investment amount
21