20 OPPORTUNITY ZONE MAGAZINE | VOLUME 2 • ISSUE 1
HOW INVESTORS CAN USE CRE CROWDFUNDING TO
SUCCESSFULLY SOURCE EQUITY FOR OZ DEVELOPMENTS
By Sean Lyons
Learn why investors and capital seekers in the OZ space both can benefit from the less traditional way of using a commercial real estate crowdfunding platform .
2020 was the year of developers learning on-the-fly how
to be more creative with raising equity for projects .
Many needed to think outside the box if they wanted to get Opportunity Zone projects funded in the midst of a global pandemic . The growing trend of commercial real estate ( CRE ) crowdfunding can be optimal during this challenging time as many continue to expand on their development portfolio .
The most compelling aspect of CRE crowdfunding platforms , particularly as it relates to finding highly motivated OZ investors who are in an active capital gains event , is their ability to reach a massive universe of untapped qualified capital . These investors are actively looking for projects that meet their return criteria and often have a year-end deadline to meet for OZ deals in order to fully recognize the benefits of the program . This dynamic is the very definition of a “ captive audience ” who are proactively searching for what groups have to offer in the form of LP equity in a growth market .
THE BENEFITS OF CROWDFUNDING FOR OZ
The expanse of the reach these platforms offer goes well beyond anything many can ever do on their own . The “ friends and family ” option works well for smaller projects , but as companies
OPPORTUNITYZONE . COM