Abraham Aboraya | Orlando Business Journal | Apr 8, 2014 | If crowdfunding can create a company like Oculus VR — a company bought by Facebook for $2 billion— it only makes sense for crowdfunding to look at real estate.
Crowdfunding, for the uninitiated, is when groups of people pledge small dollar amounts to a project on sites like Kickstarter and Indiegogo. And now an Orlando group is launching a site to facilitate small investments — as little as $1,000 — in residential real estate.
The company, Orlando-based Peer2PeerNetworks LLC, and the site, available here, soft-launched late last week. Right now, the site is just registering users, with plans to have properties available in July. I spoke with Raynell Bell, one of the managing partners of the firm.
“We thought we would make it a little easier for the individual to get invested,” Bell said. “Instead of having large investors buying a large building, we wanted to bring it in a little lower to have the same flexibility and leverage.”
Bell said the site will focus on the residential real estate market, with a couple of sweet spots: condos, single-family homes and “super rentals,” properties that can be turned into vacation rentals for out-of-country travelers. The company is working with brokers to find and vet the deals, including Sommerville Real Estate Group in Thornton Park, as well as one other as-yet-unnamed brokerage firm.
The actual transactions would be done by real estate lawyers at Vihlen & Vinadia PA in Lake Mary.
“I am looking for more brokers,” Bell said.
The idea is relatively simply: Brokers find a property that would fit the Peer2PeerNetworks’s data points, and it would be posted on the site. If Peer2PeerNetworks can raise enough money from small, individual investors, the company would buy the property and flip it, or rent it if a buyer can’t be found.
By Jason Paltrowitz Executive Vice President at OTC Markets Group, CrowdfundBeat Guest Post, At its core, raising capital is about building relationships. Companies…