Commercial Investment Real Estate September/October 2018 | Page 19

For example, Trion Properties of Los Angeles has used both RealCrowd and CrowdStreet to source equity and investors for its first fund. While investors can participate in more than one platform, this allowed Trion Properties to reach those who are experienced and comfortable with each respective website. Additionally, while the two platforms have similarities since they were both chosen carefully to fit the company’s needs, dif- ferences between them include minimum investment and invest- ment terms. A wide range of options is available, depending on what platform is used, often specializing in certain types of investment. Some of the available options include direct investment in equity, debt investments, eREITS, and funds. 3. Leverage upfront savings for potential investors. While it is far too early to determine to what degree these digital invest- ment platforms will cut out the traditional middleman, in many cases online crowdfunding creates a more direct method of real estate investment and can lead to immediate savings in upfront fees for investors. In turn, this means that commercial real estate owners, devel- opers, and investment firms can utilize this absence of fees as an incentive for their potential investors, and might ultimately see them investing more than they would have otherwise. One example is an eREIT — the online, crowdfunded version of a REIT — which on many platforms is available to invest in with no fees or a low single-digit percentage. On the other hand, traditional, non-traded public REITs require that investors pay fees of up to 15 percent. Crowdfunding the Future Commercial real estate crowdfunding is an exciting prospect, as it brings more potential investors to the playing field and miti- gates risk. That said, it is still a relatively new, and in many ways fragmented, sector that can be intimidating to navigate. The benefits of crowdfunding can far outweigh any risk or discomfort due to the unfamiliarity or relative newness of the process. When considering or approaching crowdfunding for the first time, it is critical that owners, developers, and invest- ment firms perform extensive research into the platforms avail- able to ensure that they will reach the right potential investors for their needs. Max Sharkansky is managing partner at Trion Properties in Los Angeles, a private equity investment firm that primarily acquires value-add real estate properties with an emphasis on multifamily. Contact him at [email protected]. CCIM Development Specialty Track The CCIM Development Specialty Track is one of the industry’s leading continuing education concentrations, providing commercial real estate developers, investors, and consultants with a comprehensive understanding of the entire process of development from due diligence to disposition. The program content is structured around the Real Estate Development Matrix developed by Daniel Kohlhepp, Ph.D., of the world-renowned Johns Hopkins Carey Business School. Next Classroom Courses: Introduction to Development Workshop Date: October 1-3 Location: Vancouver, BC Date: October 17-19 Location: Niagara Falls, Ontario Tuition: Member: $985 REALTOR®: $1,135 Non-member: $1,285 Course Formats: Classroom and Online Instructor-Led To learn more visit www.ccim.com/dev-track or call [phone], opt 2 CCIM.COM September | October 2018 17