Any crowdfunding sites do debt financing for condo complexes?

Any crowdfunding sites do debt financing for condo complexes?

FL · Member since 2016 · 912 posts · 107 votes

I don't have a lot of experience with crowdfunding platforms. The one time I talked to one, I was told they don't deal with new development of condominium complexes (either debt or equity). Anyone know if this can work?

0Reply
10 views

Most Popular Reply

Investor · Round Rock, TX · Member since 2010 · 8k+ posts · 4k+ votes
5y

You can syndicate any security provided you make the necessary disclosures and follow the law.  There is no good reason you can’t syndicate payment dependent notes or other debt instruments.

Talk to a securities attorney.

See this reply in the discussion

7 Replies

Jump to latestLatest
  • Rental Property Investor · RVA · Member since 2016 · 5k+ posts · 4k+ votes
    5y

    Why go with a crowdfunding site rather than syndicating and getting your debt from a bank?

  • FL · Member since 2016 · 912 posts · 107 votes
    5y
    Originally posted by @Taylor L.:

    Why go with a crowdfunding site rather than syndicating and getting your debt from a bank?

    I always thought that "syndicating" meant finding equity partners.

    Going to a bank would be ideal, but if that option is not available for some reason.

  • Rental Property Investor · RVA · Member since 2016 · 5k+ posts · 4k+ votes
    5y
    Originally posted by @Patrick Philip:
    Originally posted by @Taylor L.:

    Why go with a crowdfunding site rather than syndicating and getting your debt from a bank?

    I always thought that "syndicating" meant finding equity partners.

    Going to a bank would be ideal, but if that option is not available for some reason.

    Typically yes, when talking about syndicating folks are referring to equity. There are sponsorship teams who are syndicating debt structures for their properties now. I haven't been involved with that myself however so my knowledge is limited. 

  • FL · Member since 2016 · 912 posts · 107 votes
    5y
    Originally posted by @Taylor L.:
    Originally posted by @Patrick Philip:
    Originally posted by @Taylor L.:

    Why go with a crowdfunding site rather than syndicating and getting your debt from a bank?

    I always thought that "syndicating" meant finding equity partners.

    Going to a bank would be ideal, but if that option is not available for some reason.

    Typically yes, when talking about syndicating folks are referring to equity. There are sponsorship teams who are syndicating debt structures for their properties now. I haven't been involved with that myself however so my knowledge is limited. 

     How do I find a "team" like this? They find lenders for other people's projects?

  • Real Estate Investor · Indianapolis, IN · Member since 2014 · 9 posts · 0 votes
    5y

    Hey @Patrick Philip I think I can help. DM me and we can schedule a time to talk. 

  • Rental Property Investor · RVA · Member since 2016 · 5k+ posts · 4k+ votes
    5y
    Originally posted by @Patrick Philip:
    Originally posted by @Taylor L.:
    Originally posted by @Patrick Philip:
    Originally posted by @Taylor L.:

    Why go with a crowdfunding site rather than syndicating and getting your debt from a bank?

    I always thought that "syndicating" meant finding equity partners.

    Going to a bank would be ideal, but if that option is not available for some reason.

    Typically yes, when talking about syndicating folks are referring to equity. There are sponsorship teams who are syndicating debt structures for their properties now. I haven't been involved with that myself however so my knowledge is limited. 

     How do I find a "team" like this? They find lenders for other people's projects?

     Networking! As you can see from the other response in the thread, it's already started. People in this space tend to gather at commercial real estate syndication events and in those groups.

  • Investor · Round Rock, TX · Member since 2010 · 8k+ posts · 4k+ votes
    5y

    You can syndicate any security provided you make the necessary disclosures and follow the law.  There is no good reason you can’t syndicate payment dependent notes or other debt instruments.

    Talk to a securities attorney.

Join the conversationCreate a free account to reply, vote on answers and follow this thread.