Website will allow small investments in commercial
ORLANDO, Fla. – May 5, 2014 – Crowdfunding, when groups of people pledge small dollar amounts to a project on sites like Kickstarter, is coming to Florida's property market.
Orlando-based Peer2PeerNetworks LLC is launching a website to facilitate small investments – as little as $1,000 – in residential real estate. The site, which soft-launched late last week, is currently just registering users with plans to have properties available this summer.
"We thought we would make it a little easier for the individual to get invested," says Raynell Bell, one of the managing partners of the venture. " Instead of having large investors buying a large building, we wanted to bring it in a little lower to have the same flexibility and leverage."
Bell says the site will focus on the residential real estate sector, including condominiums, single-family homes and so-called "super rentals" – properties that can be turned into vacation rentals for travelers coming from abroad.
Peer2PeerNetworks plans to work with brokers to find and vet the deals, including Sommerville Real Estate Group. Brokers will be tasked with finding properties that fit the Peer2PeerNetworks' data points and then posting them on the site.
If Peer2PeerNetworks can raise sufficient funds from small, individual investors, the firm would then purchase the property and either flip it or rent it if a buyer cannot be found.
Source: Orlando Business Journal, April 8, 2014; Abraham Aboraya
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