When the first real estate crowdfunding firms launched about five years ago, they were met by plenty of skeptics. Yet the sector has continued to shake off uncertainty and win over a growing base of sponsors and investors.
“The initial stigma of crowdfunding is long gone and everyone in our industry, even the largest groups, recognize it as a viable source of capital raises,” says Stephen Cassidy, president at Denholtz Associates, a Piscataway, N.J.-based private investment company that has been in business for more than 60 years. For Denholtz, crowdfunding has proved to be a very effective way of sourcing equity.
The company completed its first crowdfunding equity raise on the CrowdStreet platform in early 2016 for a Downtown Orlando office building and now uses the online platform to source capital on three to four deals per year, raising anywhere from about $500,000 to $3 million in equity.
Suraj Shrestha is an associate at Harborside Partners. He has been taking the lead role on research projects; to develop and implement online marketing strategies for search engine optimization and social media marketing. He is one of the core parts for helping to grow business revenue and the company’s online presence.