Loquidity, a real estate investment crowdfunding platform, has opened a new securities offering to investors featuring a multifamily property in Allendale, Michigan, a suburb of booming Grand Rapids. Interested accredited investors may participate in the offer at a minimum level of $5000. Loquidity will be investing their own money as well indicating confidence in the project. The platform stated they will focus exclusively on procuring quality deal flow in the Midwest, a region that is increasingly attracting domestic and international investors as it experiences an economic resurgence. Loquidity is based in Michigan.
The $285,000 offering for the acquisition of a 16-unit, two-building apartment complex in Allendale, home to one of Michigan’s largest universities, has good upside potential for investors for multiple reasons, according to Loquidity CEO Jesse Clem.
“The greater Grand Rapids area boasts a steadily improving jobs market and some of the highest multifamily occupancy rates in the country. We saw a great opportunity in this undervalued property,” said Clem. “After certain capital improvements are made and rents are brought up to market prices, we’re expecting an estimated internal rate of return (IRR) between 9 and 11 percent for five years.”
Loquidity wants to change the way real estate investment is done by providing a transparent summary and risk analysis of each property online and setting a significantly lowered minimum investment amount of just $5,000 per deal. Investors in the deal will acquire shares of Loquidity (Mista-Way), LLC (the property holding entity), while the deal’s sponsors, Loquidity’s own Jesse Clem and COO Joe Elias, will be the guarantors of the loan the company obtains for renovations.
“We believe that more crowdfunding platforms—especially those in real estate—should be willing to put their money where their mouth is,” said Elias. “We are not only the personal guarantors for this deal, but also intend to contribute our own money to each deal we offer investors, ensuring the platform and investors’ interests are always aligned.”
Loquidity is presenting this offering to the public through new rules pursuant to the JOBS Act, which allow for general solicitation of investors. However, the company can only accept funds from accredited investors who have been verified as such.
“We hold the law and the new rules for advertising private securities in the highest regard,” added Clem. “We have instituted procedures and safeguards for the company and our investors at every step along the way.”
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