How Sponsors Can Wisely Choose A Crowdfunding Site And Raise Their Full Ask

How Sponsors Can Wisely Choose A Crowdfunding Site

And Raise Their Full Ask

www.GetREFM.com/valuate

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

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Valuate software

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The New Capital Landscape

• Sourcing capital is now potentially much easier due to crowdfunding’s legalization

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Crowdfunding in the Capital Stack

Equity

Mezzanine DebtSenior Debt

US-focused Real Estate Crowdfunding Platforms – 49 as of 6/22/14

6Source: TimesRealtyNews.com

US-focused Real Estate Crowdfunding Platforms – 116 as of 5/20/15

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…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…

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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?

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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

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How To Choose A Crowdfunding Platform

• Get a referral from a satisfied customer

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How To Choose A Crowdfunding Platform

• Get to know the principals

• Join the platform and experience the onboarding

• Find the list on our blog

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How To Choose A Crowdfunding Platform

How To Position Your Ask To Sell Out

• Professional photography/renderings

• Property interior and exterior

• Your headshots

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How To Position Your Ask To Sell Out

• Communicate your relevant track record

• Similar projects

• Lineage with a particular geography

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How To Position Your Ask To Sell Out

• Disclose the identified risks

• Mitigation tactics

• Acceptance

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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?

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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

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How To Position Your Ask To Sell Out

• Include a testimonial

• “Social proof” trumps bragging

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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

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How To Position Your Ask To Sell Out

• Show the investor prospect their projected returns

• Tailored to their investment amount

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www.GetREFM.com/valuate