RIVERHEAD, N.Y., May 30, 2014
RIVERHEAD, N.Y., May 30, 2014 /PRNewswire/ — You no longer need to be a multi-millionaire to invest in the nation’s premier luxury real estate market. Through Realty Crowdfunding LLC, the first investment vehicle of its kind, people can now own a piece of the beachfront mansions that have defined the most prestigious – and profitable – real estate market in the Northeast for generations.
With estimated returns of 20 percent or more, Realty Crowdfunding has created an extraordinary opportunity for investors who are looking to capitalize on the hottest trend in real estate or simply diversify their portfolio. The enterprise is run by experienced developers and talented designers who have had tremendous success building and selling mansions all over the Hamptons. With Realty Crowdfunding, they created the nation’s first luxury real estate investment vehicle, www.fundinghamptons.com an online marketplace that combines the security of real estate investment trusts with the financial gains of being a principal developer.
“We are incredibly excited to announce this new venture,” said Richard Gherardi, principal of Realty Crowdfunding. “Through the popular crowdfunding model, which has typically been reserved for risky start-ups or commercial real estate projects, we at Realty Crowdfunding are finally able to give ordinary risk-adverse investors a fair chance to own a lucrative piece of paradise.”
Owner and president of several New York construction and real estate development companies, Gherardi has been involved in high-end residential and commercial projects for more than 30 years, building more than 250 homes ranging from $300,000 to $15 million.
To participate in Realty Crowdfunding, investors pay a minimum of $5,000 into a pooled fund, which is a single-purpose entity capped at $9 million and detailed in a private placement memorandum. The fund will provide capital for one project at a time. Once the fund receives the required capital to start a particular project, it will be closed for additional investments. The remaining funds will be used to finance similar high-end, single-family projects ranging in size, construction cost and the sales price, and will be available to investors on a first-come, first-serve basis. Examples of the projects – all luxury mansions in the Hamptons – are available at www.fundinghamptons.com.
The lifecycle of the project, from development to the closing process, will take an estimated 14 to 18 months. Realty Crowdfunding Fund, LLC and its members will own and hold title to the property until it is sold. At that point, the investors will receive preferred interest as well as profit sharing. The minimal duration of an investment is three years, giving investors an opportunity to participate in several projects.
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