I am thinking about creating crowdfunding portal business.
What are some things you would like to see in a portal that would help differentiate us from the competition? Debt or Equity funding? Are you looking for large single investors or lots of small unaccredited investors. Would potentially a state specific niches interest you? Anything that you feel the competition is lacking or has not covered?
Had a buddy who is willing to put some serious capital into creating this website. But still a bit unclear of how we will compete with the much larger well known platforms such as Fundrise, Realtymogul, Crowdstreet, etc.
Crowdfunding real estate portals are a bit oversaturated don't you think? You can't build a better mouse trap, when there's already 100+ mouse traps on the market, all claiming to be the best.
There is one thing sorely missing in crowdfunding sites.
1) Very few of them are investor focused. Basically less transparency about the deal.
2) You cannot compare one deal with another. No site compares asset management fees, sponsor fees, property management fees, etc between one deal and another
3) Growth rate of rents which is the reason for generating higher returns. You can't compare the projection of rental growth with one another.
4) No one is publishing if the sponsors had any bad apples before - bankruptcy, etc
A better view of defaults, late payments, how settled. None of them focus on the bad. We are all grown ups and investors and we fully understand not all investments are good, but we need to know what makes them go bad, how they are resolved and what is the recoup rate for principal.
I agree with much of what you said but its very hard to pull off unless you are hyper-local and hyper focused on one niche. This type of hyperlocal hyer niche focused crowd funding is rough because your base is so small. Also, keep in mind the client is both the investor and the sponsor so some this would again be hard to pull off. In addition, I have seen fairly good comparisons by sponsors themselves sometimes of rents.
You are definitely more correct in terms of the lack of comparison of asset management fees, sponsor fees etc. What I can tell you is the PPMs do contain this, its very hard to compare like to like because of differences in degree of difficulity, region, asset etc. and I can also tell you they the platforms will work with sponsors to make sure their fees are in line at least to the point they feel it can be sold.
Lastly, I think a bankrupcy would be disclosed in the PPM
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