MinnowCfunding LLC ("Minnow") is a "funding portal" for crowdfunding as defined under Section 3(a)(80) of the Securities Exchange Act of 1934 (SEA), as revised by the JOBS Act, and Rule 300(c)(2) under Regulation Crowdfunding.
Minnow is a real estate crowdfunding online portal that assists small real estate entrepreneurs, developers and operators to raise capital through securities offerings to a pool of individual investors online. It is Minnow's objective to offer the investors the education and direct investment opportunities while offering a low-cost efficient channel to the issuers to raise the capital they need.
Minnow offers access to a wide variety of properties types located in major cities like Los Angeles, San Francisco, Seattle, New York, Chicago and Miami, including multi-family, office, retail, hospitality, industrial and ground-up development. We are to connect investors who want to invest in real estate with the real estate companies who need real estate capital. MinnowCfunding has a team of professionals with experience in real estate, credit, finance, technology and regulation. We are headquartered in Los Angeles, California, but you can reach us anytime 24/7 online through our website.
Types of US Real Estate Investment Offerings by MinnowCfunding
Residential rental real estate investments are properties such as houses, apartment buildings, townhouses, and vacation houses where a person or family pays rental to live in the property. The length of their stay is based upon the agreement signed between the tenant and the landlord, known as the lease agreement. Crowdfunding investor will not engage in the lease agreement relationship.
Commercial real estate investments consist mostly of things like office buildings and skyscrapers. These properties are usually leased out to companies and small business owners, who would pay rent to use the property. It isn't unusual for commercial real estate to involve multiple tenants and multi-year leases. This can lead to greater stability in cash flow and income to the entity that owns and manages the real estate investment.
Industrial real estate investments can consist of everything from industrial warehouses leased to firms as distribution centers over long-term agreements to storage units, car washes and other special purpose real estate that generates income from customers who temporarily use the facility. Industrial real estate investments often have significant fee and service revenue streams, such as adding coin-operated vacuum cleaners at a car wash, to increase the return of the investments to the owner.
Retail real estate investments consist of shopping malls, strip malls, and other retail storefronts. They are generally leased to retail merchants on a multi-year lease based on market rent and in some cases additional rent based on a percentage of sales generated by the tenant store.
Mixed-use real estate investments are those that combine any of the above categories into a single project. For example, this can be a mixed-use three-story office building surrounded by retail shops. A bank, a health insurance company and other small businesses leased out the offices and the retail are leased by a Panera Bread, a membership gym, a quick service restaurant, an upscale retail shop, a virtual golf range, and a hair salon.
The above types of real estate investment offering will be offered by the issuer in the form of an equity stake in the entity that owns and manages the real estate investment. The investors will have no role with respect to, or control over, the day-to-day operation of the real estate investment. There is no guarantee of returns and investor may face possible loss of principal if the investment fails to perform.
Risks and Characteristics of US Real Estate Investment offerings by MinnowCfunding:
Crowdfunding investments in real estate ventures are speculative and these ventures often fail. The success of the real estate venture depends on the issuer's management expertise and market condition. You should not expect guaranteed returns. You should be able to afford and prepared lose your entire investment if investment fails.
Crowdfunding investors are limited in the ability to sell their investment for the first year and may have to hold the investment for an indefinite period of time as no public exchange exists for the trading of real estate unlike investing in companies listed on the stock exchange.
Underlying Tenant Quality
When assessing an income-producing property, an important consideration is the quality of the underlying tenancy. This is important because when crowdfunding investor evaluates real estate investment , you're banking on two things: the physical real estate, and the income stream from the tenants. If the tenants are likely to default on their rental obligation, the risk of the investment failure to meet its obligation is high and the investment might lose its value.
Requires Professional Management
To ensure income production and sustainable value, income property needs to be managed in a hands-on manner. Tenant complaints must be addressed. Landscaping must be handled. And, when the building starts to age, it needs to be renovated. As crowdfunding investors play no management role in the underlying real estate investment, they will have to rely on issuer's management ability and credibility.
Variability among Regions
While it sounds cliché, location is one of the important aspects of real estate investments; a piece of real estate can perform very differently among countries, regions, cities and even within the same city. These regional differences need to be considered when making a real estate investment by crowdfunding investor when they select which crowdfunding offering to invest on MinnowCfunding.