Latest news & feature reports on Crowdfunding
iFunding is pleased to announce William Skelley, Founder and CEO, will be appearing on The Stoler Report this month. The episode debut will air Tuesday, February 22nd, 2016 on NYC CUNY TV. To view a sneak peek of the episode, view it now on YouTube.
The Stoler Report-New York’s Business Report, is New York’s only television broadcast featuring real estate and business leaders. Michael R. Stoler hosts the show. The weekly program features compelling group discussions highlighting current events and issues in the world of real estate.
Featured alongside Mr. Skelley, in the panel discussion of “The Evolution of Crowdfunding for Commercial Real Estate,” includes renowned real estate and investment professionals: Paul Braungart, Founder and President, Regional Capital Group; John Shannon, Senior Managing Director, HFZ Capital Group; Larry Davis, President, Shorewood Real Estate Group; and Nicholas Mastroianni II, President and CEO, US Immigration Fund.
The show will air over the next three months on the more than twenty university, educational, community, and public access television stations. For those not able to watch live, the episode will also be available on The Stoler Report website and The Stoler Report App, which can be downloaded for free on iTunes and Google Play, after the debut showing on Tuesday, February 22nd . Also view the episode now, on YouTube!
Investing in commercial real estate can be a very lucrative business—but also a risky one that requires patience, fortitude, and industry knowledge to ultimately be successful. How do you separate yourself from the crowd? Here are eight ways highly effective investors stay on top of the game.
While many investors aspire to own a piece of the skylines dotting America’s gateway cities, 2016 is the year of the secondary and tertiary markets, which are offering a better proposition value than most of the traditional “Big Six” markets. The Urban Land Institute (ULI) recently released its “Emerging Trends in Real Estate” report, which highlights some of the best markets to watch this year.
Issues found with larger markets, the report says, is that they have become so highly valued on a global perspective that pricing has risen to unattainable levels for a typical domestic investor. When ULI reconciled its survey results, it became clear that markets were moving in the rankings as a result of market participants’ need to take a more offensive approach to the market or to set up a desirable defensive position.
The cities in the top 10 are a combination of traditional higher-growth markets that offer favorable business conditions; markets that were slowed by the global financial crisis, but are now in a position where demographics may drive future growth; or new markets that appear to be positioned to move up a class in the investment strata.
ULI’s 2016 markets to watch, and the reasons they made the list:
As we head into the new year, investor sentiment toward commercial real estate remains positive, with many investors reporting that they plan to increase their allocations in 2016, reports the recently released Colliers International Global Investment Outlook. Overall, the U.S. remains the top destination for global capital, with global gateway cities the preferred investment target.
One trend the report noted was that while global appetite for real estate remains strong, rising uncertainty stemming from China, economic weaknesses in emerging markets, the tightening of monetary policy in the U.S., and geo-political events across the global has made investors more wary. Of the 600 investors surveyed for the report, 44% said they’re “likely” or “highly likely” to take on more risk over the next 12 months—a drop from 59% a year earlier, though this also may reflect that fund managers have taken as much risks as their mandates allow them. This trend was apparent across all types of capital, with the sharpest reduction in private equity funds, which dropped from 81% to 47% over the year.
When the report looked specifically at U.S. investors, it found that they have dialed back their intended investment activity from last year, with 21% of investors expecting to be net sellers this year, compared to none last year. Fewer investors also intend to expand their activity, while this group, as a whole seems to be moderately risk averse. Yield expectations among U.S. investors tend to be more bullish, with 68% of them expecting leveraged returns of between 11% and 20%, even though they recognize that finding the right yields has become increasingly challenging and further cap rate compression may be dwindling in some markets.
Given these trends, iFunding believes that crowdfunding will become a more popular investment vehicle for those looking to buy into commercial real estate opportunities in 2016.
Investors are reporting the opportunities provided through real estate crowdfunding have competitive risk-adjusted returns, high tangible asset value, attractive and stable income return, and are a good hedge against inflation. While there is always risk associated with investing in real estate, iFunding has the experience and capacity to perform due diligence on all our listings with the goal of minimizing risk and maximizing returns, whether in multifamily, office, industrial, retail, or hospitality.
The Most Popular Property Choices
According to Colliers, the most popular property choice for global investors in offices in central business districts at 61%, up from 46% last year. This followed by industrial and logistics (48%), developments (39%), and shopping centers (38%). Suburban office came in fifth and was one of the fastest growing sectors in terms of preference (32%, up from 21% in 2015), while multifamily felt the steepest drop, falling from second to sixth place this year despite continued interest from U.S. and Canadian investors. To read the full Colliers International Global Investment Outlook report click here.
In 2014, global crowdfunding grew by 167% to reach $16.2 billion raised—$9.4 billion in the United States alone, and $1 billion of that in real estate. This year, Massolution, a crowdfunding research and advisory firm, predicts that number will more than double.
Many industries are taking advantage of this innovative platform, including businesses, entrepreneurs, social causes, films, performing arts, music, and recording arts. Real estate has particularly latched on to the model, with Times Realty News tracking 152 real estate crowdfunding platforms in the United States and 62 globally as of December 21.
Whether you’re a new or seasoned commercial real estate sponsor, tapping into a crowdsourced platform like iFunding should be taken into serious consideration for financing acquisition and development projects in the new year. Here are four reasons why crowdfunding makes sense:
Since the market downturn, banks and other traditional lenders have enacted stricter credit and lending standards. Crowdfunding can fill in gaps created by more diligent underwriting and provide capital for projects that these lenders may otherwise find too complex. Larger institutional lenders may also pass over opportunities underneath a certain price threshold, instead preferring one $30 million investment to managing six $5 million investments. Crowdfunding is a strong contender in the mid-market space.
Companies like iFunding track the solicitation, preferences, and commitments of thousands of accredited investors whom sponsors or developers may not have access to via traditional networking. Crowdfunding’s digital platform allows for a broader promotional reach, introducing projects to investors who may not otherwise be familiar with the sponsor or geographical area.
Overall, crowdfunding broadens participation in real estate investment. iFunding’s typical customer is an entrepreneur with $1 million to $5 million net worth seeking high-quality deals, and investment opportunities are available for as little as $5,000 across a broad range of property types, including multifamily, retail, office, and mixed-use. And as crowdfunding regulations begin to encompass more investors, we’ll see greater participation at even lower buy-ins.
In addition to tracking potential investors, technology utilized by crowdfunding companies takes care of a project’s promotion, subscription, due diligence, fund management, project documentation, investor communication, and financial reporting—allowing sponsors to instead focus on project quality and completion. The overall process is more streamlined, reduces sponsor and investment fees, and increases transparency into a project.
A digital platform allows investors access to carefully selected investments based on their preferences, from property type and location to risk profile and return profile. This ensures the right investors are matched to the right sponsors and projects.
iFunding, a leading real estate crowdfunding platform, had its best month in its 3 year history, offering investors over $14 M in real estate investment properties.
August is typically one of the quietest months of the year, with investors distracted by summer activities. However, due to the quality of iFunding’s real estate opportunities, the company quickly funded six of its eight projects listed within a week of introducing the project to its 7,000 accredited investors.
“iFunding takes pride in providing quality deals for our investors, “ William Skelley, Founder and CEO, states, “We have been focusing on developing sound relationships with our sponsors, and this month, it’s clear this effort has paid off.”
“We thoroughly enjoy working with the iFunding team and using its platform for our funding source.” Myles Bruckal, Founder of The Bruckal Group says, “Raising capital with iFunding exceeded our expectations, and therefore listing with them again was an easy decision. We are honored to be apart of its most successful month, and we’re in discussions regarding our next project for the iFunding platform. ”
iFunding expects continued growth by offering larger and higher quality opportunities and acquiring additional accredited investors.
iFunding is a leading real estate crowdfunding platform, facilitating debt and preferred equity fundraising for properties ranging from multi-family residences to apartment towers, hotels and resorts, ,retail locations, malls, offices, mixed-use buildings, and more. iFunding provides opportunities for its 7,000 accredited investors to invest in institutional-quality real estate deals, with a minimum investment of $5,000. The company oversees deals throughout their lifespan, providing extensive information and transparency to give investors insight and oversight into their investments. It also generates financing for multi-project funds, and partners with family offices to co-fund opportunities with its individual investors. iFunding offers flexible financing terms to real estate developer and operators. Visit http://www.ifunding.co for more information, or connect with us on LinkedIn athttp://www.linkedin.com/company/innovational-funding, on Facebook at http://www.facebook.com/iFunding , or via @inno_funding on Twitter. The phone number for investor and operator inquiries is 844-367-4386.
US government data indicates that commercial real estate lending is healthier than it has been for many years.
With Q2 ’15 data analysis now available, the Federal Reserve notes that commercial real estate loan delinquency rates have been in steady decline, implying a healthier economy and real estate market. The percent of CRE loans from banks with delinquent payments dropped to 1.2%, the lowest rate since 2006. In between these years, the delinquency rate climbed as high as 8.77%, during the major recession. There’s a great chart here, with a screen capture below.
New York, NY, August 14, 2015– iFunding, an online real estate market place that’s revolutionizing real estate investing, raised $1.27M within days of listing a new project in the metro Denver area on its platform. The capital was raised for the building and development of 12 townhomes that have been named Virginia Village. The property is located in an urban Denver neighborhood just south of Cherry Creek.
Virginia Village is located at 4400 E. Bails Place and 4401 E Jewel Avenue, Denver, Colorado. Collectively the property is 30,000 square feet. This property will have 12 urban townhomes. Marcus & Millichap 2015 Q1 reports the Denver metro area is poised to be one of the strongest apartment markets in the country.
“iFunding continues to provide the strongest investments and highest quality sponsors for our investors. This project is a testament to our goals and values,” William Skelley, Founder, Chairman, and CEO of iFunding states, “The quality of deals and sponsors on our platform has significantly grown this year along side the growth of our team. We are excited about what the future holds for our investors as well as our company.”
iFunding is a leading real estate crowdfunding platform, facilitating debt and preferred equity fundraising for properties range from multi-family residences and condominium estates, to apartment towers, hotels and resorts, single-family homes, retail locations, malls, offices, mixed-use buildings, and more. iFunding provides opportunities for accredited investors to invest in institutional-quality real estate deals, with a minimum investment of just $5,000. The company oversees deals throughout their lifespan, providing extensive information and transparency to give investors insight and oversight into their investments. It also generates financing for multi-project funds, and partners with family offices to co-fund opportunities with its individual investors. We offer flexible financing terms to real estate developers. Visit http://www.ifunding.co for more information, or connect with us on LinkedIn at http://www.linkedin.com/company/innovational-funding, on Facebook at http://www.facebook.com/iFunding , or via @inno_funding on Twitter. The phone number for investor and operator inquiries is 844-367-4386.
For the 2nd year in a row, William Skelley, CEO and Founder of iFunding, will be speaking on a panel at the Annual Crowdfunding Forum for Real Estate hosted by IMN. This year’s event will take place September 16th and 17th at the Fairmont in Santa Monica, California.
Skelley is founder and CEO of iFunding, the online, commercial real estate investment marketplace for accredited investors and institutions. He is responsible for business development activities at the company, which has financed over 35 real estate projects with total real estate value of over $400 million. William specializes in working with family offices. Prior to iFunding, he founded a boutique investment bank that underwrote $2 billion in real estate transactions, ranging from hotels/resorts acquiring hundreds of millions of dollars in financing, to mixed-use properties and single family homes. Earlier, William was a principal at Rose Park Advisors, a hedge fund founded by Harvard Business School professor Dr. Clayton Christensen, specializing in “disruptive innovation.” He has also worked at General Electric, Olympus and as an advisor to several start-ups. He attended Harvard Business School and Hobart College.
Skelley will be speaking on the panel discussing, ‘Evaluating the Expansion of & Economic Factors Behind the Growth of Crowdfunding’ along side other executives in the real estate crowdfunding industry.
iFunding will be meeting with developers and investors by request from September 16th through 17th. If interested, email email@example.com.