How Does the First RealFund platform work?
First RealFund offers insider access to fully screened and vetted commercial real estate investments historically constrained to an exclusive network of individuals and funds capable of multi-million dollar single investments.
Real Estate Crowdfunding is the next generation in real estate financing and investment. Specifically, Real Estate Crowdfunding optimizes technology, current regulatory guidelines, and real estate’s emergence as a compelling component of the “alternative” asset class. In short, crowdfunding is capturing the ongoing evolution of the symbiotic relationship between real estate owners & private placement investors.
Crowdfunding – Today & Tomorrow
The Real Estate Crowdfunding phenomena remains in the very early stages of its full potential. New legislation, improved online technology, and more sophisticated service providers continue to make the online investment process smoother. Each day investors across the world are realizing the advantages of these investment offerings. Simultaneously, property owners are recognizing how to effectively access and deploy crowdfunded capital.
The total estimated valuation of US commercial real estate is more than $15 trillion, with US commercial real estate investment sales totaling $487 Billion in 2016. Current estimates of the crowdfunded universe are in the hundreds of millions annually. Assuming aggregate commercial real estate crowdfunding more than doubles to $5 billion of investments in the coming years, this represents merely 0.033% of the total value of US commercial assets.
Members of the Crowd
The Crowd is an aggregation of a variety of sources of capital. Mostly, those consist of Accredited Investors, Family Offices, and Investment Funds with a real estate focus. Some members of our crowd are former Real Estate executives leveraging their industry expertise to potentially enhance earnings. Family offices may rely on our offerings to meet their investment guidelines, diversify their portfolios, and potentially meet their return objectives. Investment funds are able to deploy passive capital based on a particular geography, asset class, or type of investment (e.g. mezzanine debt).