Multifamily Insights

Ep. 32: Crowdfunding Pros and Cons with Craig Cecilio


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Crowdfunding platforms have sprung up in recent years with many similarities. Most crowdfunding sites were developed by technology people to curate deals from other syndicators. However, Craig Cecilio built DiversyFund based on nearly 20 years of experience in real estate to syndicate his own developments. Based in San Diego, Craig syndicates development deals all across California. Today, he shares more info on crowdfunding and things to consider before taking the leap.

Key Market Insights • Grew up on the East Coast and learned the best way to get wealthy was in real estate • Came across syndicators at 20 and learned how to put together deals • Had a knack for technology, which naturally led him to crowdfunding • Crowdfunding is you aggregating investments from a group of people that you don't know to acquire a property • The band width won't allow you to have coffee with 1,000 people to raise $1,000 each • JOBS Act allowed you to take online solicitations from investors, previously you had to have a pre-existing relationship • Capital is cheaper and easier to come by and can fund deals that otherwise may not get funded • Crowdfunding PROS: Raising capital, transparency and liquidity • Crowdfunding CONS: Unknown players, unsustainable platforms • Offerings with minimum investments as low as $500 starting in March • Wanted control over the platform to ensure the entire operations met their standards • $100 million worth of assets under management • Focused on $5 million equity range for mixed use and ground up multifamily developments across California • Watching cryptocurrency to see how it impacts crowdfunding • Projects: Hollywood Hills 20,000 sq ft home • Building 60 apartments in San Diego (Hillcrest)

Bull's Eye Tips: Winning Your Market: Get out there and hustle – Access to the data or access to the people who have the data Tracking Market Changes: Develop a network of service providers (property managers, brokers) Daily Habit: Reassess Priorities, Exercise, and Listen to Daughters

Resources: Best Business Books: Articles on Elon Musk, Peter Thiel, and Jeff Bezos Digital Resources Basecamp - https://basecamp.com/ Salesforce - https://www.salesforce.com/

Tweet This: "You can invest in crowdfunded deals with as little as $500" "Should be apart of your portfolio, not 100% of your portfolio"

Places to Grab a Bite:The Crack Shack in San Diego -https://www.crackshack.com/

Connect with Craig: Diversyfund.com

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Multifamily InsightsBy John Casmon

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