In this series, we explore the advance costs of issuance for crowdfunding major CRE projects. The new SEC rules on crowdfunding create the opportunity to obtain non-recourse equity financing for major CRE new construction projects as early as the conceptual stage. Structured properly, the successful transaction construct creates the opportunity for the developer to retain control of the project and the lion’s-share of the profit stream.
Get An Estimate Before You Start
You need to know all the ins and outs of the new rules, and you need to know what costs you may have to incur to control a project financing of up to $75 million on more or less the same cost spread as a commercial bank loan transaction.
Say Goodbye to Recourse
The beauty of the new regulations lies in the opportunity to sidestep the entirety of the subjective credit underwriting and collateral underwriting processes that frequently lock developers out of the game. No collateral – no loan? Maybe not. Watch the entire series and then ask yourself what you would do now that you know what the real options and opportunities are in this brave new world.