GRAND RAPIDS, MI – A pair of West Michigan real estate executives are hoping to cash in on the region’s growing reputation as a hot
rental market by creating website, an online “crowdfunding” platform aimed at attracting investors.CrowdFunding advertizing
Partners Joe Elias and Jesse Clem hope to raise $1.4 million from investors to renovate the Leonard Oaks Apartments, a 72-unit apartment complex they have a contract to buy for $2.85 million. It’s the first of multiple deals they hope to fund through the online platform.CrowdFunding marketing
The pair say the launch of their online marketplace will create a new avenue to draw real estate investors from outside of West Michigan. Investors using the online platform can get in for as little as $5,000.Kickstarter Marketing
“The platform’s launch allows investors to capitalize on the Midwest’s continued economic recovery, including lower unemployment rates and increased manufacturing activity, helping drive strong demand for multifamily and commercial property development,” the company said in a news release issued Monday, June 30.
“Loquidity will specifically focus on real estate investments in Michigan, Illinois, Ohio, Wisconsin, Iowa, Nebraska, Minnesota, Missouri, Kentucky, Pennsylvania, Virginia, Tennessee, Indiana and Kansas,” the company said.Indiegogo Marketing
“We understand the real estate markets in this region better than anyone,” said Clem, the co-founder and CEO of Loquidity. “With a strong jobs market, a rebounding manufacturing sector and a thriving property market, the Midwest is becoming a prime target for real estate investors in the U.S. and internationally.”
For their first project at 1630 Leonard Street NE, Loquidity’s business plan calls for the partnership to upgrade the 34-year-old development’s 72 units by investing almost $7,000 per unit in new appliances, cabinets, flooring, and window treatments over the next five years.crowdfunding websites
Subsequent rent increases should bring investors an estimated 7-year cash-on-return of 13.25 percent, according to the business plan.
Elias, the chief operating officer, said recent surveys and purchasing activity have resulted in renewed interest in the Grand Rapids rental market.
“In reality, our deals represent an incredible value to investors as the employment rate and other economic variables improve,” Elias said. “We also anticipate strong interest from native Midwesterners who want to help bolster their communities while realizing a financial return.”crowdfunding marketing
Posted from: http://www.mlive.com/business/west-michigan/index.ssf/2014/06/crowdfunding_platform_created.html