Which Investors Are Fit for Crowdfunding?

Crowdfunding is rounding the six-year anniversary of its induction into the real estate capital stack, but crowdfunders are still educating audiences about the process and benefits of new capital source. The second-annual Crowdinvest Summit—which explores all crowdfunding platforms—gave real estate crowdfunders the opportunity to address potential investors and entrepreneurs. The real estate investment panel, one of two real estate-focused panels during the two-day conference and included Clay Malcolm of New Direction, real estate attorney Jillian Sidoti, Adam Kaufman of ArborCrowd, Matt Schuberg of RealCap, discussed the traits investors should look for in a crowdfunding platform.

“I think that transparency is one of the biggest things that investors should look for in a crowdfunding platform,” Schuberg, co-founder and CEO of RealCap, tells GlobeSt.com in an interview following the panel discussion. “One of the things that you want to look for is how transparent the company is upfront with fees and expenses. You don’t want to do business with a company that is hiding that in their offering document. That is a big importance. The other biggest thing is the track record. You need to make sure that there is a strong background and that the platform has done this before.” To ensure transparency, the panel moderator, Amy Wan, founder and chief legal hacker at Bootstrap Legal, asked each of the panelists to explain their fees.