I’m sure most of you have by now heard of crowdfunding sites such as Kickstarter etc. I was taken with the idea and wondered why I didn’t think of it!
Anyway the idea has permeated to the real estate industry so I can’t be happier. I really like the idea of being part of a group that finances a property and then share in the profits when it’s sold.
Once I started investigating the various sites that deal in crowdfunding real estate I also realised that they are not all the same. I decided to write a few blogs to cover the various aspects and hope they are interesting and inspiring for you.
Imagine you are an investor, looking for the next real estate opportunity. Or a seller hoping to publicize your property to real estate enthusiasts. You may even see yourself as the middleman between investors and sellers, in charge of executing deals and providing returns. If you see yourself in any of these roles, Collaperty is for you!
Collaperty is the first social commercial real estate platform to connect sellers, buyers, and investors to collaborate on real estate investments. Through an online medium, Collaperty aims to unite real estate enthusiasts and investors that share similar interests.
Three Northeastern University students developed the concept for Collaperty in 2009 after discovering problems during their first real estate investment. The founders identified four main problems within the industry: (1) lack of visibility on investment grade properties, (2) lending constraints with banks, (3) limited networks to pool funds with, and (4) lack of domain knowledge in the real estate world.
“Traditionally, real estate has always been transacted in a very old fashion manner,” explains co-founder Amit Patel. “There are many steps and stakeholders involved in the real estate process, often making it daunting or difficult to navigate for new investors. Collaperty wants to evolve this traditional process through the use of the Internet to make it easier for people to collaborate.”
Collaperty is targeting three main audience groups: investors, sponsors, and sellers, keeping each group’s specific benefits and goals in mind. The company plans to work solely with accredited investors that have the capacity to identify real estate deals and provide returns. Sponsors include real estate professionals, developers, and enthusiasts, who act as the “deal managers.” Lastly, sellers are those selling their own commercial real estate. Collaperty helps pair sellers with sponsors, allowing sellers to get the exposure they need.
Patel notes that Collaperty offers much more than its competitors in the current market.
“Their models do not offer a one-stop-shop experience. There is no ability to group invest, collaborate, or move actual dollars over these competitor platforms. These are features which differentiate Collaperty immensely.”
As Collaperty prepares to transform the real estate investment process, the founders insist that the experience of creating a business from the ground up, along with its partnership with IDEA: Northeastern’s Venture Accelerator, have been the most gratifying.
“The most rewarding part of developing Collaperty is the learning experience that is has and continues to provide us. Through our development, we have overcome many challenges and have grown as a team and remain excited, focused, and passionate about delivering a revolutionary solution that will make real estate investing easier more accessible.”
Collaperty is set to launch in early 2013. Visit Collaperty.com to stay updated!