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| Adam Hooper |
The fund, which currently has $359 million in AUM, underwrites short-term,
first position loans to finance real estate transactions in Colorado, Utah and
Texas.
Investors are
immediately diversified across the entire portfolio of 125 conservatively
underwritten loans.
“Our platform is unique among crowdfunding providers based on the ability for investors to establish a direct relationship with the real estate sponsor,” says Adam Hooper, Co-Founder and CEO of RealCrowd.
“Many of today’s crowdfunding sites function like a hedge fund, which can drive up fees on both sides. To keep costs low and give everyday accredited investors access to institutional-quality investments, RealCrowd serves as a direct marketplace where these entities build new relationships.”
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| Adam J. Fountain |
“There is a significant gap in the market for short-term real estate
financing,” says Adam Fountain, co-owner of BREM. “Short-term loans
are typically used to develop, renovate, or improve a commercial or residential
property.
"We are satisfying an unmet need for short-term
financing while offering an investment product poised to deliver strong
risk-adjusted returns to our investors for the long-term.”
Mr. Fountain notes that many smaller regional banks, which in the past
provided short-term debt, were forced to close their doors or were absorbed by
larger banks following the 2008 financial crisis.
“Small regional banks that survived the Great Recession
rarely provide short-term financing in the current market as a result of more
restrictive regulations,” says Mr. Fountain. “This creates a gap in the credit
market and an opportunity for us and our investors.”
Broadmark Real Estate Lending Fund II is targeting a fundraise of
approximately $10 million through the RealCrowd crowdfunding platform.
RealCrowd also has a high bar for approval to be featured on
its marketplace. The firm ensures that each real estate Sponsor on its platform
has more than 10 years of principal-level experience and more than $50 million
in transactional history, while also ensuring that each investor is accredited.
RealCrowd is one of the nation’s leading direct investment
online real estate platforms. As one of the first real estate equity
crowdfunding companies, the firm has hosted more than $4.5 billion in real
estate offerings through its platform, spanning more than 170 investments
across 38 states.
Headquartered in Portland, Oregon, RealCrowd is backed by
venture capital seed accelerator Y Combinator in 2013.
CONTACTS:
Lexi Astfalk / Jenn Quader
Brower Group Inc.
949.955.7940
