What Do Investors Need to Know About Crowdfunding?

e15f3c9f885adc5ba4dfc6a4_1920
Crowdfunding platforms have exploded recently, with experts expecting $2.57B raised this year. And while we have discussed what investors should look for in a platform, we’ve yet to tackle why you should be looking at crowdfunding in the first place. To get a grip on crowdfunding’s advantages, potential concerns and future, Bisnow sat down with partner RealtyMogul.com’s CTO and co-founder, Justin Hughes (pictured). The Appeal Justin says the advantages of crowdfunding extend beyond accessibility and reach (although he admits they are significant benefits for investors). A solid crowdfunding platform provides investors additional investment opportunities they wouldn’t normally get because investors can “leverage the connections of the platform, as well as benefit from the enhanced purchasing power when investors pool their capital.”

Read more at: https://www.bisnow.com/national/news/technology/is-crowdfunding-an-investors-best-friend-52400?utm_source=CopyShare&utm_medium=Browser

Morgan Stanley: Crowdfunding Loans Showing Up in CMBS

Morgan Stanley: Crowdfunding Loans Showing Up in CMBS
Crowdfunding has become a hit in real estate circles, providing a new way to raise capital—and a nice way for investors to get a piece of the action with as little as $1k. But who knew it would find its way to CMBS? Morgan Stanley analyst Richard Hill did some digging, discovering three loans (worth $71M total) made to Colony Hills Capital—underpinning two CMBS deals—secured against a portfolio of five multifamily properties. And here’s the kicker: this portfolio received $12M of crowdfunding on EarlyShares.com (an ad that can still be found here), Morgan Stanley says, which could signal a new trend. It’s an “untested ownership structure in CMBS,” Richard says. While it’s something to pay attention to, “the question becomes, how many of these are showing up in CMBS and, more importantly, what happens when these things go bad?” Richard says. “I really don’t know.” [Bloomberg]

Read more at: https://www.bisnow.com/national/news/other/morgan-stanley-real-estate-is-the-final-crowdfunding-frontier-50579?utm_source=CopyShare&utm_medium=Browser

Find out more about Liberty at our Youtube page
Interested in commercial mortgage financing reach out and contact us.