Neighborhood Ventures, one of the country’s largest real estate crowdfunding companies, announced today the launch of NV REIT, its first nationwide offering which provides a unique real estate investment opportunity to accredited and non-accredited, individual investors of all income levels. Previously, participation in Neighborhood Venture projects had been limited to Arizona residents.
Raising investment capital using a crowdfunding model, Neighborhood Ventures plans to purchase a mix of developing and cash-flowing Multifamily dwellings in the Sun Belt and Mountainwest, with the intent to hold for 10 years while value rises. Shareholders benefit from monthly rents, and profits made from the sale of the properties. The NV REIT has set a target amount of $50 million based on a minimum investment of $1,000. Investors receive a 6% Preferred Annual Cash Distribution based on operating cash flow followed by an 80/20 split on a pro-rata basis of the remaining cash flow. Neighborhood Ventures will focus on securing Multifamily properties that the company feels are undervalued with a goal of unlocking their market potential.
“This is game-changing news for individual investors across the country,” says Neighborhood Ventures’ Co-founder and CEO, Jamison Manwaring. “With today’s launch of the NV REIT, anyone interested in investing in commercial real estate has gained an appealing low threshold for entry.”
With this type of accessibility, Neighborhood Ventures sees immense wealth-generating opportunities in the real estate crowdfunding sector for the average American. Prior to crowdfunding-law changes, there were roughly 10 million accredited investors in the U.S, now the market has opened up to about 200 million individuals who can invest in commercial real estate projects.