CrowdTranche was founded to solve a fundamental problem with commercial real estate (CRE) investing – the high cost of entry for investors who like to have some control over their investments. After all, wouldn’t more us like to own an asset that typically produces regular cash flow, is backed up by a physical asset that can be appraised and insured, and has the potential for capital gains?
The problem is that most good CRE investments require hundreds of thousands, if not millions of dollars, in equity. Except for the ultra-wealthy, placing such a large amount of money into one investment, no matter how seemingly secure, is a risky proposition. Real estate investment trusts (REITs) offer the ability to own a piece of a pool of CRE properties for a relatively small investment, but you have no control over the property portfolio and must trust the judgement of the portfolio manager. More recently, some start-ups have offered investors the ability to own a piece of a specific CRE property, but only as a purely passive investment with no control over the property’s management. Even worse, you can’t easily sell these investments like you can with REIT shares.
Instead, CrowdTranche will allow investors to own a piece of a specific CRE property, while maintaining much of the reporting and governance that comes with traditional real estate investing. Investors can access much of the same property information that would be available if they owned 100% of the property and can vote on critical issues, including when to sell the property. CrowdTranche also offers the ability to collaborate with fellow investors so that everyone can work together to maximize property returns.
Sounds interesting? Well, it’s a new idea, but one that will probably become very popular very fast. So I invite you to join us on our journey to building the world’s most interactive crowdfunding portal for CRE investments. Please register and be among the first to participate.