How We Conduct Vetting on Real Estate Investment

By Tommy Leung

Founder & CEO, MinnowCfunding LLC

At MinnowCfunding, we care about our investor expectation and protection. Our team of real estate experts will ensure the vetting of the project and the real estate enterprise/entrepreneur is complete and comprehensive. We have assembled a team of real estate veterans and advisors with over 50 years of collective experience underwriting and managing residential and commercial real estate. This team will adopt a strict standard and procedure in vetting the real estate investment opportunities that look to raise capital on the platform. In this regard, I want to outline the approach and methodology that this team will apply in for major steps--Screening, Due Diligence, Fact Checking and Monitoring.

Step 1. Screening

Through a vigorous interview process, the team will evaluate the character and experience of the managing sponsor and his management team. The team will consider if the sponsor has a solid reputation, track record, the requisite skill and knowledge to optimally manage the investment in a trustworthy and professional manner. By Regulation Crowdfunding, we will not allow any "bad actor" to gain access to the platform for any crowdfunding offering. At the same time, we will gather the preliminary information to check if the subject project is a viable investment based on its location, cost and profit.

Step 2 Due Diligence

The team will obtain basic diligence items in order to perform the crucial investment analysis to determine if the investment is sound. This typically includes an investment overview, business plan, proposed organizational and entity structure, industry and banking references, credit and criminal background checks, financial statement, tax returns and more.

Using the information gathered, the team will conduct financial analysis, market analysis and marketability analysis to evaluate the risk and return of the project.

Step 3 Fact Checking

To validate the information and data provided by the sponsor, the team will conduct site visit if possible, cross check with local real estate agents and professionals, city record check, title report check and other necessary third party check.

Following the completion of all above three steps, if MinnowCfunding determines the proposed investment and project is valid, MinnowCfunding will enter into Crowdfunding Agreement with the sponsor and file the required Form C with SEC. MinnowCfunding will then list the investment information on its platform with the input from the sponsor.

Step 4 Monitoring

Following the closing of the investment offering, MinnowCfunding will periodically contact and visit the sponsor and subject property for an update. MinnowCfunding will ensure the sponsor will file annual financial report and report any material event such as company ownership change, disposition and bankruptcy.


While MinnowCfunding can never guarantee that the objectives of any particular real estate investment can be realized, a comprehensive approach and due diligence of an investment’s viability and feasibility will be implemented. At MinnowCfunding, we are building relationships with active, reputable, and disciplined operators so that we can provide quality deal flow to our investors. As with all investments, investors should evaluate each individual real estate opportunity to see which best fits his or her investment strategy. Real estate investments do carry risks and do not guarantee a return of any sort.