Any crowdfunding sites do debt financing for condo complexes?

7 Replies

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?

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.

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. 

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?

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.

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.