California at the Top of the Real Estate Crowdfunding Ladder

Realtyshares is a company that has taken the real estate crowdfunding industry by storm. Clearly the number one competitor in their sector, they owe a large part of that climb up the ladder to their success in California.

Looking to revamp the archaic industry of real estate investing through the use of technology, RealtyShares has solidified itself as a leader in the burgeoning real estate crowdfunding arena. California has been one of the most active states for the company that has its roots firmly planted in the Bay Area.

California borrowers and sponsors have raised more than $53 million across 90 properties in the Golden State. These projects range from residential fix-and-flips, to multi-family and commercial value-add investment opportunities, providing the RealtyShares network of more than 20,000 investors with a diverse set of deals. “Good buys have been hard to find considering the substantial demand for California real estate,” said Brian Esquivel, Director of Equity Investments. “By leveraging the crowd, we still have the ability to vet attractive investment opportunities across the state as sponsors look for alternative ways to fund their projects.”

There were 68 residential opportunities on the website, split between debt and equity offerings. Debt deals made up the majority, giving developers and operators a chance to raise money for a project quickly and at a potentially attractive interest rate. Equity properties have different risks associated with them, but potentially offer higher yields, depending on the project.

While residential properties proved to be the largest driver of investment on the platform, commercial properties were also an important piece of the RealtyShares Californian portfolio. Sponsors raised funding for 16 commercial equity projects, led by a $1.75 million multi-family property in the Bay Area and a retail center in Sacramento that drew interest from 25 investors, including seven from te state. People have been drawn to the skyrocketing rents and thriving real estate valuations in the major metro areas, while balancing concerns that they are investing into an overinflated real estate market.

“Our commercial equity pipeline is growing at a good rate,” said Esquivel. “We have seen a lot of opportunity for a low cost, flexible, sub-institutional equity product across the country, and real estate crowdfunding platforms like RealtyShares are in a unique position to fill that gap. Working with sponsors, we can craft equity deals where our community can contribute either 90 percent of the equity requirement or sit side-by-side with other investors on the project.”

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  • Umberto

    This is like the next generation of Real Estate, it is so crazy how this industry keeps changing year after year after year. unbeleivable