Real Estate Moves Into Crowd Funding

iFunding, a leading commercial real estate platform that uses crowdfunding to finance its business model, has recently hired Daniel Drew as its Vice President and head of Real Estate. Dan will be in charge of expanding iFunding‘s business and platform offerings for not only its individual investors but also to its institutional clients. He was picked for this position because of his extensive experience in structuring and underwriting commercial real estate deals totaling more than 2 billion dollars. He also previously held positions at the prestigious Carlton Group, a private equity firm, and Deutsche Bank Berkshire Mortgage who specialized in multifamily loans for Fannie Mae and Freddie Mac. From their Facebook posts it’s clear iFunding believes that Drew’s knowledge and depth of understanding in the commercial real estate field will assist iFunding in expanding not only the number and quality of its offerings to investors but also its business development efforts.

iFunding was founded by William Skelly one of the principals at Rose Park Investors, a hedge fund that focused on investing in disruptive technologies, and Sohin Shaw a crowdfunding expert and entrepreneur. Both Skelly and Shaw believe that one of the attractions of iFunding for investors is the targeted returns they reach for. On refurbishments, in particular, they are well above other site’s return targets. On some, in particular, they offer exceptional double-digit returns that have a preferred return plus an equity upside component. These investments compare very well with many private money investments. In addition, both feel that the crowd funding model is an excellent and safe way to democratize the real estate investing process allowing many more people to get into quality deals. For investors who are new to this arena, iFunding also provides as much information as possible about every deal possible. This is for not only educational purposes of the investor but also for the promotion of iFunding to the community and to the industry.

One thing that many people should be aware of are the regulations that apply to crowdfunding and do not apply to other investments. Federal rule 506(c) and regulation D allows a private business like iFunding to solicit an accredited investor using social media, like facebook, Twitter, and even the iFunding Angel.co page. There’s also no limit as to how much money an accredited investor can put into an investment using this approach. These new approaches have increased the availability of money to fund projects, that are more institutional in nature and that require bigger infusions of capital than are available from iFunding’s smaller individual investors.  Skelley wants you to see the iFunding app on the Google Play store.

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