The Science of Real Estate:

Assessing risk. Engineering returns.

About the Author

Tesse Hoekstra

Ms. Hoekstra has close to 5 years experience in the environmental and engineering industry. She writes about a broad range of topics - from emerging trends and technologies to regulatory changes, looking specifically at how these affect the commercial real estate sector.

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Okay. So I have worked in the Association Management business for more than 18 years. Now that crowd funding has arrived, as a Registered Investment Advisor, I am looking at developing a platform that though is not "Guaranteed" angel investors could receive an annual dividend or interest payment that is very competitive with basic markets interest rates.

Although, the equity funding process would be attached to my company per se. The actual investment profile would be separate and we would only charge an origination fee of 1.0 to 1.5 percent of the original book value (One time payment). The idea is to issue a Certificate of Participation (COP) to the investors. The Associations would borrow funds (short to intermediate term) for Capital Improvement projects, insurance deductibles, etc. without sacrificing their Reserve Funds.

The idea is for Associations to "Be Their Own Banker" and have greater control over their financial resources and opportunities. The Associations benefit by obtaining funding at a reduced overall cost, their financing is less than standard market rates, the funding is non-collateralized, and they budget from their Association funds accordingly. In addition, local vendors perform the work . The property values are maintained without a rash of Special Assessments or continual Annual Assessment increases. thus making the property sales more lucrative. In return, investors receive their principal and interest back over time (usually less than 60 months).

So my question is this...How would this type of a process fit into the standard equity and/or crowdfunding models?
Posted by David S | Saturday, April 05 2014 at 1:22PM ET
I have heard of local movie theatres using a crowdfunding approach to getting digital equiplment installed
Posted by Nate Kirby | Tuesday, April 08 2014 at 5:40PM ET
As a national due diligence firm, getting quality due diligence done, and protecting all investors, is key. Structuring the package of deliverable's (any variation of the blog post above COULD be appropriate) and the terms and conditions are crucial. If you need help, GRS Group is happy to help. - Jeff Coyne
Posted by Jeff Coyne | Thursday, April 17 2014 at 10:41AM ET

About Partner Engineering and Science, Inc.

Partner Engineering and Science, Inc. (Partner) is a full-service environmental and engineering consulting firm completing projects nationwide. We specialize in evaluating properties in connection with real estate transactions, development or management. Learn more at