Realty411 Magazine Featuring Patty Arvielo - New American Funding | Page 32

FEATURE
RealCap Brings New Real
Estate Sector To Crowdfunding
R
eal estate crowdfunding has been growing at an
incredible pace thanks to increased awareness of
the option and ease of investment it offers. This
is a trend only likely to surge this year, in as the Wells
Fargo scandal plays out, and investors seek safer and
more profitable places to put their money than the old
banks. So far, much of this action has been focused on
the residential sector. RealCap brings something new to
the table.
Real estate may still be the best investment option
on the landscape, but it is no secret that some ques-
tions about the sustainability of home price growth and
affordability have been emerging.
Overall sensible investors are still seeking sound
investments where their capital will be safe, and which
provide attractive yields, with a great outlook for on-
going performance. RealCap’s founders Tim Soto and
Matt Schuberg believe they’ve found the ideal fit in self
storage.
Self storage may not jump out at most investors as
the most prestigious asset to brag about to their
friends at dinner, but Matt and Tim are bullish on
its advantages. No one wants to be caught holding resi-
dential at the top of the market. And we’ve already been
hearing about excess inventory and slumping sales in
some destinations, while other areas are feeling intense
competition, which keeps driving housing prices sky
high. Matt Schuberg points out that “the self-storage
Realty411Guide.com

With RealCap investors can get
started with as little as $10,000, and
benefit from being invested alongside
other savvy investors, and an
experienced management team who
is invested in their success too.
sector remains under supplied, even with 3,000
potential new developments on the horizon na-
tionwide.”
Less competition in this sector also means more
value to be found, and “returns that can be as high as
8% to 15% per year.” Self storage is also one of the
few recession resistant sectors, which can often per-
form even better in tougher economic periods. When
foreclosures are up and more people are moving they
need storage more than ever. In spite of the popu-
larity of reality TV shows showing the auctioning
off of the contents of some of these units in default
Tim Soto says that in their experience default rates
are very low as people really want to preserve their
belongings. And it’s clearly a lot easier for a tenant
to find $50 a month to keep their prized possessions
and heirlooms versus $2,000 a month for a mortgage
payment.
Low management burden is another great perk of
this asset class. Now with the ability to partner with
others via crowdfunding the risks and demands of
investing are even lower. With RealCap investors can
get started with as little as $10,000, and benefit from
being invested alongside other savvy investors, and
an experienced management team who is invested in
their success too. RealCap invests alongside its cli-
ents in every deal to ensure motivations and interests
PAGE 32 • 2017

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