Entrepreneurs hope to build residential real estate empire through crowdfunding

rop-holdfolio-041315-2colJacob Blackett and Sterling White sit at the intersection of crowdfunding and residential real estate with their 6-month-old firm, Holdfolio. The 24-year-olds buy rental houses. In the coming months, they plan to bundle them and sell investors equity stakes in the portfolio through a Web-based platform. Investor returns will come in the form of rental income and gains from property sales. The company so far has few—if any—direct competitors.

Traditionally, investors in this space have needed loans or a lot of cash, as well as a property-management strategy. Holdfolio’s founders said their soon-to-launch platform will allow accredited investors to invest in real estate with as little as $5,000 while the company handles leasing and maintenance.

“We’re trying to create passive income through holdings,” said Blackett, who said he’s sold more than 500 rental properties since age 18.

“I just realized that the best way for someone to invest in real estate is not by going out and owning a piece of property themselves. The best way is to partner with successful, full-time real estate investors.”

Crowdfunding has been around for years, and returns on investment have largely come in the form of one-time rewards like T-shirts or a newly launched product.

Debt and equity crowdfunding have taken off since the 2012 JOBS Act loosened federal securities laws, and real estate firms are among the companies increasingly tapping online investor pools for financing.

Jordan Fishfeld, CEO of Chicago-based commercial real estate crowdfunding platform PeerRealty, said crowdfunding is changing how people invest in real estate and Holdfolio appears to have a good shot at success in the nascent space.

Continued Here


About Stephen G. Barr, Group Publisher

Author, Syndicated Columnist, Editor In-Chief and Group Publisher at SGB Media Group, a social media marketing firm specializing in digital media content production, publishing, affiliate marketing, public relations and advertising. Over 25 years experience in retailing, advertising, website & online forum development, niche social networking, affiliate marketing, search optimization, branding and identity, site location, non-profit fund raising. Event planning, promotion, production and MC/Host at public events. Author, Editor & Publisher of 35 syndicated, digital publications utilizing multiple digital distribution channels in conjunction with launching and administrating national advertising campaigns for major Fortune 500 advertisers in partnership with Google, Ning, Facebook, Myspace, Yahoo, DoubleClick, LinkShare, PepperJam and other industry leading third party affiliate networks. Product development team member from conception to launch on many websites, tangible goods and organizational structure for start ups. Specialties: Public relations, retailing, advertising, website & online forum development, niche social networking, blogging, email campaigns, affiliate/performance marketing, search optimization, branding and identity, site location, event production & promotion, non-profit fund raising and tasteful, responsible adult content publishing. An internationally recognized and read social media columnist & pundit on The Examiner, Associate Content, Vator.tv, X-Biz.net and Technorati and his own affiliated sites.
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