RealtyShares announced last week it is now offering prefunded deals on its real estate crowdfunding platform. The website revealed that these deals are beneficial to investors because they reduce time to curated accrual deals.
Director of Investor Relations at RealtyShares, Amy Kirsch, stated:
“RealtyShares recently closed a substantial line of credit through an institutional partner, which will allow us to partially prefund every debt deal, as well as equity deals which require expedited closings, before making them available to our investors.From the sponsor perspective, the advantage of prefunding is quick access to guaranteed capital. In hot real estate markets where competition for properties runs high, the ability to raise capital quickly can potentially make or break the success of a project. By prefunding deals, we make it possible for developers to move ahead without incurring unnecessary delays.”
Kirsch also explained the prefunded deals feature is just another tool that the platform can use to make the process more “attractive” to its community:
“Shorter funding windows means investors will be in a position to potentially begin accruing interest faster. However, prefunded deals will still be subject to the level of diligence we put into all of the opportunities on the platform. It is important to note that risks associated with RealtyShares’ investments do not change; prefunding simply affords a new level of efficiency.”
She then added:
“This latest development is reflective of how RealtyShares has been able to evolve and flourish in the real estate investing space, and we’re excited to work with our community to make borrowing and participating easier for all.”
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