REALCAP BRINGS NEW REAL ESTATE SECTOR TO CROWDFUNDING TIM HOUGHTEN
Real estate crowdfunding has been growing at an incredible pace thanks to increased awareness of the option,
and the ease of investment it offers. This is a trend only likely to surge over the next year 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 questions 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 ongoing performance.
RealCap’s founders Tim Soto and Matt Schuberg
believe they’ve found the ideal fit in selfstorage.
Selfstorage may not jump out at most investors
as the most prestigious asset to brag about to
friends at dinner. Yet, Matt and Tim are bullish on
its advantages. No one wants to be caught holding residential at the top of the market. 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 selfstorage sector
remains undersupplied, even with 3,000 potential new developments on the horizon nationwide.” Less
competition in this sector means more value to be found, and “returns that can be as high as 8% to 15% per
year.” Selfstorage is also one of the few recession resistant sectors which can often perform even better in
tougher economic periods. When foreclosures are up and more people are moving, they need storage more
than ever. Despite the popularity of reality TV shows showing the auctioning 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 house 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 in invested in their success too. RealCap invests alongside its clients in every deal to
ensure motivations and interests are aligned.