Once I have an account, what’s the online experience like?
Create an account by requesting access to our offerings. Our proprietary website combines a secure and easy-to-use online interface. Our site is designed to:
Browse investment opportunities, including debt, equity, or Real Estate Funds
Read or download offering terms and access due diligence materials
Execute Investments: electronically sign documents, submit ACH or wire payments
Manage all open investments, including distributions, review asset management updates, and access relevant documents (tax forms, signed agreements, etc)
Who Uses Crowdfunded Capital?
A variety and growing universe of property owners are realizing that Real Estate crowdfunding is a compelling source of capital. Common examples include owners with growing portfolios that have exhausted existing sources of equity capital. Crowdfunded offerings may include transactions with a value add component (physical improvements) or seasoned owners leveraging local expertise in secondary markets and improving neighborhoods.
What Diligence Materials are typically provided?
ProForma (and underwriting) excel model, market comps, owner background and track record, photos, videos, project highlights, FAQ’s, and legal documents.
How do I fund my investment?
Once you are registered and certified as an “accredited investor” you will have access to the investment package/data room for each live offering. Our investment process allows you to fund an investment via ACH or wire transfer.
What is the minimum investment amount per investor (individual or entity)?
This will vary on a project by project basis but typically the investment minimum set by FRF will be $20,000.
What criteria does First RealFund look for in investment opportunity.
- Owner with a track record
- Good location of the subject property
- High conviction story
- Project Plan well thought out with a defined and supported exit strategy for First Realfund & the Owner themselves
- Owner have at least 5% of equity in the deal – but usually 10% of the equity
- Sound credit history of Owner
Who makes the decisions for each LLC entity?
Decisions in each LLC are governed by the operating agreement. Every operating agreement is slightly different, but with similar characteristics. Each has a Manager (who may also be a member) and members. In some instances, there may be classes of members. The manager has the right and obligations to make all day to day decisions and the members are passive investors, except for certain major decisions. Typically, exercise of those major decisions is not required during the term of the investment. However, in the event of a default by the managing member, members may be required to vote to exercise certain rights.
Who is the Managing Member of the Special Purpose Vehicle LLC for FRF Investments?
First RealFund forms a Special Purpose Vehicle (typically a Delaware LLC) for each investment. First RealFund LLC will be the Managing Member of each of those entities.
How much money will the Owner invest in each deal?
Industry average of Owners investment in deals is typically 10% of the overall equity required in the deal
Will First RealFund invest alongside investors?
Yes. Part of our modus operandi is that we will invest alongside investors in each offering and in fact will be the first to fund the raise. If it’s a good enough deal to promote to you our investors it is surely good enough for us.
If I am an investor in a First RealFund offering and something happens to FRF – will my investment be affected?
In short, no. First RealFund forms a Special Purpose Vehicle (typically a Delaware LLC) for each investment for the sole purpose of being a standalone investment. So if something happens to the parent entity FRF LLC or another investment of FRF for unforeseen circumstances – it will have no effect on the Special Purpose Vehicle
Can I invest through my LLC, LP or Trust?
Yes. For each investment, you will be able to select which entity will be used to make the investment, which bank account the investment will come from, and which back account will receive distributions. Entities must be based in the United States.
How liquid is my investment? If for unforeseen reasons I need to sell early, can I?
When permitted, FRF will endeavor to assist each investor in locating a buyer of their investment interest should the need for liquidity arise prior to the realization on an investment. It may however be at a discount to the initial investment amount or subject to transaction fees.
Crowdfunding sounds interesting, but who is governing this? What are the Legal & Regulatory requirements?
First RealFund’s offerings are Private Placements are offered under Rule 506 of Regulation D. For more information on this rule, please see the SEC’s page on Rule 506 of Regulation D
What types of Investments does First RealFund Provide to Owners?
First RealFund originates Senior Debt, Mezzanine Debt, Subordinate Debt, Preferred Equity, and Joint Venture Equity Capital. Each raise is typically $500,000 to $2 million, with terms ranging from 6 months to 3 years. Our process starts with an initial review of your Capital Request. Once approved, a typical fundraising period is 15 – 30 days (some faster, some longer). We typically favor the simplest financial structure option that makes sense for each deal. We are competitive with Private Equity fund terms and we represent a compelling alternative to “friends & family” capital.
How does the relationship with First RealFund work once our Capital Raise is funded?
First RealFund forms a Special Purpose Vehicle (typically a Delaware LLC) for each investment. During the investment period, FRF will be your sole contact. Owners liaise with a single member of First RealFund’s asset management team to provide the updates, submit and confirm payments, and provide tax returns throughout the investment term. FRF handles all distributions and updates to our investors through our online platform.
Can I Invest in First RealFund LLC, the Parent Company?
We are an entirely self-funded company, we do not accept new capital investments in the First RealFund platform.