RealtyShares Equity Crowdfunding Site Raises $32.9 Million for Midwest Commercial Real Estate Projects in Illinois, Ohio and Wisconsin

Buckeye commercial real estate investment opportunities are showing a significant level of activity, with $12.25 million raised for 30 deals in Ohio, concentrating around the Cincinnati and Cleveland metropolitan areas

By Robert Hoskins

Chicago, Illinois – RealtyShares is transforming the real estate investment landscape by connecting borrowers and sponsors to debt and equity capital from accredited and institutional investors, across an array of financing products. For example, the equity crowdfunding site for commercial real estate deals has released new data showing the extent of crowdfunded investments in several Midwest real estate markets.

Commercial real estate developers, sponsors and borrowers in Ohio, Wisconsin, Michigan, Indiana and Illinois have raised $32.9 million to date from RealtyShares’ network of investors

To date, commercial real estate developers, sponsors and borrowers in Ohio, Wisconsin, Michigan, Indiana and Illinois have raised $32.9 million to date from RealtyShares’ network of investors, offering a source of financing for real estate projects by leveraging technology to connect potential investors with expertly vetted real estate deals.

“RealtyShares fits into a world in which it is more difficult than in previous decades to secure a loan for development from a bank, and where technology is creating possibilities for people across the country to assess information and connect with one another,” said Gerald Fogelson, Advisor to RealtyShares, CEO of Fogelson Group and an inductee of the Chicago Real Estate Hall of Fame. He recently joined the team bringing decades of real estate knowledge and experience to the emerging tech company.

Thus far 114 deals have been funded in the region through RealtyShares, with an average deal price of $288,000. Deals of up to $1.5 million have been financed in both Columbus, Ohio, and Chicago, Ill. Anchoring RealtyShares’ position in the region, $14 million has been raised for 53 deals in Illinois, with several investors targeting properties in and around Chicago. Buckeyes are also showing a significant level of activity, with $12.25 million raised for 30 deals in Ohio, concentrating around the Cincinnati and Cleveland areas.

“What we’re seeing now is that investors throughout the United States are interested in investing in markets like the Midwest, where small businesses and entrepreneurs are looking beyond their friends and family networks to raise money,” said Fogelson. “RealtyShares makes all that possible.”

Platinum Real Estate Holdings has been one of the leading deal sponsors in the Midwest, with twelve Michigan properties funded through RealtyShares platform totaling $378,000.

“Our business is built on acquiring and flipping low-cost homes in the metropolitan Detroit area on a short time frame,” said Anthony Rea, owner of Platinum. “RealtyShares has enabled us to raise financing quicker and more efficiently than traditional bank loans, which is a major asset in a market with low inventory and high demand from buyers.”

Hamilton Real Estate Capital is also among the Midwest developers that have funded multiple real estate projects through the RealtyShares marketplace. “Working with RealtyShares has given us access to a new group of investors in a straightforward and quick process,” Eli Glanz, Principal at Hamilton confirmed.

The Midwest continues to be a target market, especially in states where the company’s rates are competitive against traditional financing options.

“The Midwest is a very hot market,” said Kelly McDonald, the Vice President of Residential Debt at RealtyShares. “There is substantial inventory and a concentration of older neighborhoods that could use updates. We’re seeing homes that have been owned for 30 years that have a lot of potential.”

To date, the RealtyShares network of investors has funded upwards of $300 million across more than 550 investment opportunities on the platform, funding residential and commercial projects in 35 states.

Private investments are highly illiquid and risky and are not suitable for all investors. Through the RealtyShares website, these investors can browse investment opportunities, perform due diligence, invest online and have 24/7 access to an investor dashboard to watch how their investments are performing.

RealtyShares offers securities through North Capital Private Securities Corporation, member FINRA/SIPC.

For more information on how to become a real estate investor or to seek capital through the RealtyShares marketplace, please visit www.realtyshares.com.

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Robert Hoskins
(512) 627-6622
@Crowdfunding_PR

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Mr. Robert Hoskins is a seasoned marketing veteran with a proven track record of helping entrepreneurs, startups, small businesses as well as Fortune 500 corporations launch successful marketing communications campaigns to gain market traction for a wide variety of products and services.

On a regular basis, Mr. Hoskins consults with crowdfunding campaign managers as well as crowdfunding sites, portals and platforms to deliver successful crowdfunding marketing campaigns.

Google search “Robert Hoskins Crowdfunding” to see why Mr. Hoskins is considered one of the industry’s foremost crowdfunding experts that has amassed a huge social media following, which is dedicated to supporting donation-, rewards- and equity-based crowdfunding campaigns.

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RealtyShares Taps 75 Investors to Raise $1.5 Million for 192-Unit Family Apartment Complex in Columbus, Ohio

Real Estate Equity Crowdfunding Funds Cardinal Creek Townhomes, which has a 70% Occupancy Rate and Close Proximity to Major Employment Centers and Adjacent to a New School/Sports Complex

By Robert Hoskins

San Francisco, CA – RealtyShares has raised $1.5 million dollars for a 192-unit multi-family complex in Columbus, Ohio from its national network of investors. The deal was sponsored on the platform by Hamilton Real Estate Capital, a value-oriented investment firm focused on medium to large apartment complexes. More than 75 investors took part in the raise for the Cardinal Creek Townhomes in Bexley to fund the renovation, maintenance, and management of the 35 buildings on the $5.9 million property.

Real Estate Equity Crowdfunding Funds Cardinal Creek Townhomes, which has a 70% Occupancy Rate and Close Proximity to Major Employment Centers and Adjacent to a New School/Sports Complex

“We believe this project will provide our investors with an attractive return profile given the risk,” said Eli Glanz, Principal at Hamilton. “Working with RealtyShares has given us access to a new group of investors in a straight-forward and quick process. We felt the amount of equity needed and the rationale for the investment was the perfect fit.”

Since this is an equity deal, the return ultimately realized by investors will depend upon the distributions from the project and the value of the property whenever it’s sold. While this is the first deal on the platform for Hamilton, it is the second notable crowdfunded project in Columbus in recent months. In June, 80 of RealtyShares’s investors funded over a million dollars of joint venture equity for the purchase of Courtyard by Marriott Columbus West.

“Columbus, and Bexley in particular, is seeing tangible rent growth and a falling vacancy rate with minimal new inventory slated to open,” said Bryan Shultz, Vice President of Commercial Equity at RealtyShares. “The Cardinal Creek Townhomes location is intriguing, with close proximity to major employment centers and adjacent to a new school and sports complex. The property already boasts a high occupancy rate, with more than 70 percent of the units recently renovated. Most importantly, our investors are often compelled by strong track records, and Hamilton has owned or advised on over $350 million in assets like this since 2005. It is an ideal partner for a deal like this.”

RealtyShares, one of the top real estate crowdfunding sites,  is transforming the real estate investment landscape by connecting borrowers and sponsors to debt and equity capital from accredited and institutional investors, across an array of financing products. Private investments are highly illiquid and risky and are not suitable for all investors. Through the RealtyShares website, these investors can browse investment opportunities, perform due diligence, invest online and have 24/7 access to an investor dashboard to watch how their investments are performing.

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Manta Research Reports that Most Small Businesses are Still Unaware of Crowdfunding as an Alternative Finance Option

Most notably, 23 percent have funded a business project using an alternative lender, other than a traditional bank, but only two percent report having ever used a crowdfunding platform

By Robert Hoskins

Columbus, Ohio – Even though the alternative financing market is expanding at an exponential rate, a new Manta business survey reveals that two-thirds of small business owners still do not think enough funding options are available. Additionally, 69 percent feel the funding environment has not improved in the past 12 months.

Small businesses slow to jump on the alternative financing bandwagon, but interest growing
Alternative funding opportunities, including crowdfunding, are growing at a rapid rate, but the survey showcases a cautious approach by small business owners. Most notably, 23 percent have funded a business project using an alternative lender (other than a traditional bank), but only two percent report having ever used a crowdfunding platform. Lack of awareness and persistent misconceptions may be the cause.

Manta Research Reports that Most Small Businesses are Still Unaware of Crowdfunding

The majority of small business owners who have obtained traditional loans note uncertainty regarding crowdfunding and alternative lending options. Thirty percent of respondents are unsure of the risks, another 20 percent don’t understand the technology associated with these alternative sources and 14 percent report they simply do not trust them. A small number believe crowdfunding sites and alternative lenders are too complicated, while others fear business failure with less traditional financing methods (seven percent and six percent, respectively).

Traditional financing options still most popular with business owners
Manta’s survey revealed that, despite a diversifying lending environment, small business owners overwhelmingly prefer traditional financing options. More than 70 percent of respondents have sought traditional bank loans, savings, credit cards, or help from friends and family to finance their business, while less than a quarter have utilized an alternative lender (other than a bank).

“Small business owners have more diverse options today than ever before when it comes to funding their business,” said John Swanciger, CEO, Manta. “However, we’re seeing a gap between what’s available and the perception among small businesses that the lending environment has not improved. Even though traditional bank loans are difficult to secure, small businesses are still apt to rely on them.”

Of the small business owners who financed their business through alternative lenders, 38 percent did so because they did not qualify for traditional bank financing. Nearly 20 percent sought alternative lending because they needed a small short-term loan, while nine percent recognized the fast access and convenience associated with alternative lending options, and seven percent wanted ongoing access to a credit line.

The survey results also showed that when small business owners received alternative financing, the amounts they borrowed varied greatly. Most (40 percent) borrowed $10,000 or less. Others aimed higher, with 27 percent borrowing $50,000 or more. Remaining respondents were split — 17 percent borrowed $10,000 – $20,000 and another 17 percent borrowed $20,000 – $50,000.

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New U.S. Hybrid Rewards and Equity-Based Crowdfunding Site Based in Columbus, OH Surpasses $100 Million Milestone

The Fundable crowdfunding site allows entrepreneurs to launch rewards-based crowdfunding campaigns first, followed by equity crowdfunding campaigns backed by accredited equity investors

By Robert Hoskins

Columbus, OH – In a prelude to what may become the industry norm, Fundable.com announced that backers and accredited investors have pledged over $100 million in funding commitments for both rewards-based and equity-based crowdfunding campaigns. During the past 18 months, startups across all industries have utilized Fundable to move their businesses forward. Different from any other crowdfunding platform, Fundable is dedicated exclusively to helping businesses as they seek early stage growth capital. The crowdfunding platform claims to be receiving over 15,000 new company registrations each month.

The Fundable crowdfunding site allows entrepreneurs to launch rewards-based crowdfunding campaigns first, followed by equity crowdfunding campaigns backed by accredited equity investors

According to Fundable CEO Wil Schroter, “We are thrilled with the incredible success that companies have found through Fundable. It’s amazing to see companies using funding to grow real businesses that are creating jobs and making an impact on the economy.” A veteran entrepreneur himself, Schroter has nearly 20 years of experience founding successful venture-backed startups. Schroter knew firsthand that access to early stage capital was a critical problem for emerging entrepreneurs, and wanted to create a platform to solve this.

Schroter says, “the success of Fundable’s hybrid rewards and equity system proves the need for additional expansion capital after a successful rewards campaign. Companies can prove demand for their business through a rewards campaign, and then meet demand and continue to grow through an equity crowdfunding campaign.”

Due to Kickstarter’s and Indiegogo’s lack of equity investment options,  successful crowdfunding campaigns are the taking the next step on Fundable when seeking addition rounds of funding.  For example, HIDDEN, Ube and Uncharted Play all utilized Fundable to raise additional expansion capital.

Unlike Kickstarter, which experienced a huge backlash from Oculus backers that cried foul when their early rewards -based  crowdfunding campaign raised $2.4 million dollars to launch the virtual reality computer goggles product line, Fundable can follow initial seed funding rounds with equity investment deals.

But just like Kickstarter, Indiegogo and more than another 1,000 crowdfunding platforms worldwide, Fundable is not allowed by the SEC to allow unaccredited investors to invest in equity investment deals.

Hopefully by the 3rd quarter of 2014 the rest of United States will be given the opportunity to strike it rich by investing in small startups.  If pledgers are willing to back a set of Oculus goggles for $300 to jump start a business, the same backers should certainly should have been allowed to recoup their investment when Oculus accepted a $2 billion buyout from Facebook.  According to Forbes, that $300 investment risk would have paid hobby investors a whopping $20,000 return on investment on their investment.

Fundable.com is one of the largest business crowdfunding platforms, with over $100 million in commitments, and is dedicated exclusively to helping entrepreneurs. Different from any other crowdfunding platform, Fundable offers both rewards and equity business crowdfunding options.

In an upcoming crowdfunding trend, Fundable recently acquired LaunchRock, a premiere tool for launching startup ideas, in order to acquire over 500,000 registered startup companies, 10 million users, and 15,000 companies.

The crowdfunding site is the brain child of veteran entrepreneurs who have raised countless venture capital and angel investment rounds to finance early stage growth startups.

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To Celebrate the 2nd Anniversary of the 2012 JOBS Act, Front Page PR Offers Low-Cost License Fee to Start Crowdfunding Training Classes throughout the United States

License Agreement offers Chambers of Commerce, SBA Offices, Small Business Development Centers (SBDC), SCORE & Startup Incubators and Business Accelerators the Opportunity to Offer Front Page PR’s Content to Launch Their Own Crowdfunding Training Programs

 By Robert Hoskins

AUSTIN, TX – Front Page PR announced a new low-cost licensed crowdfunding training class that will provide non-profits, economic development, Meetup groups and government agencies such as the Small Business Administration (SBA) with the basic training materials needed to begin educating entrepreneurs, veterans, startups, small businesses, high schools, junior colleges, universities and employment agencies on how to use crowdfunding to eradicate unemployment by facilitating new businesses and creating new jobs throughout the United States.

Front Page PR is the #1 Crowdfunding PR firm in America

For only $300 per year, licensees will receive the training materials needed to launch a crowdfunding advocacy training program in their community. The low price point should allow crowdfunding educators and experienced public speakers to break even on the very first class by charging attendees $25 or more to attend the seminar. Click here to buy a one-year license.

“Most Small Business Development Centers (SBDC) charge an average of $49 per class to attend classes on how to write a business plan, how to get a bank loan, how to seek venture capital, or how to seek alternative financing to start up a small business,” said Robert Hoskins, Front Page PR’s Director of Crowdfunding Campaigns. “At this price tag, our Crowdfunding Training Program will only take six paying customers to fund a full year’s subscription. After the initial cost, training 20 people per month at $49 would generate approximately $11,460 per year in revenue.”

Front Page PR will provide free Crowdfunding Training Class Workshops for instructors who want to provide the Crowdfunding Training Class, but have no knowledge of the crowdfunding industry or experience in teaching their communities how to launch successful crowdfunding campaigns. In addition, the workshops will include free press release templates and teach instructors how to utilize cost-effective PR/media relations programs to raise awareness for the classes within the local community.

Front Page PR’s Crowdfunding Seminar materials include:

• How to Plan a Successful Crowdfunding Campaign
• How to Conduct a Crowdfunding Competitive Analysis
• How to Shoot a Crowdfunding Pitch Video
• How to Write a Persuasive Crowdfunding Profile
• How to Offer Effective Perks & Rewards
• How to Set Up a Realistic Fundraising Goal

Even Fortune 500 corporations can get involved. Many large companies such as IBM have launched intranet crowdfunding programs to incentivize their employees. Crowdfunding campaigns can be used as an excellent research and development tool. Internal crowdfunding campaigns can be used to fast track great business ideas upward to management based on employee support, which completely bypasses the typical roadblocks that thwart innovation.

Front Page PR’s crowdfunding training class rollout will target Atlanta, Austin, Baltimore, Birmingham, Boston, Charlotte, Chicago, Columbus, D/FW, Detroit, Houston, Indianapolis, Jacksonville, Los Angeles, Memphis, Milwaukee, New York, Philadelphia, Phoenix, San Antonio, San Diego, San Francisco, San Jose, Seattle, Washington, DC and Wichita. Additional markets will be added based on market demand.

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Fundable Research Pegs Crowdfunding Industry to Inject $65 Billion in 2014

Fundable Infographic Predicts Crowfunding Industry Growth in 2014 to Inject $65 Billion and Create 270,0000 Jobs

By Robert Hoskins

Fundable.com’s infographic below details some great facts for people who are writing business plans and reporters looking for some great stats to quote for blogs, online media outlets and print/broadcast media.  These numbers are going to grow as more and more people become aware of the booming crowdfunding industry.

This is just the beginning, but report reports, white paper and trade press articles continue to paint a rosy picture for the accelerated Crowdfunding industry growth rate that is predicted for the combined fundraising economic stimulus forecast for donation-based, equity-based and perks/rewards crowdfunding campaigns in 2014.

Fundable’s Crowdfunding Statistics predict that:

• In 2014, Crowdfunding will add 270,000 jobs and inject $65,000,000,000 into the worldwide economy.
• Crowdfunding companies create 1 new job for every $37,702 invested/donated.
• For every $1 invested in Crowdfunding startups leads to $6.36 in revenue.
• At this growth rate, Crowdfunding will contribute $500 billion in funding per year by 2020.
• This $500 billion in funding will generate $3.2 trillion in economic value per year by
• In tandem, Crowdfunding will create 2.2 million new jobs by 2020

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