Real estate tech firm reAlpha, which is targeting the $1.2 trillion short-term rental market, is raising up to $75,000,000 pursuant to Regulation A+. reAlpha’s common stock is now available for purchase at a price of $10 per share.
“We’re thrilled to offer Main Street investors access to early-stage investment opportunities through our Regulation A+ offering,” said Giri Devanur, reAlpha’s founder and CEO.
Net proceeds of the offering will allow the company to build an expanded inventory of homes. A minority interest in these individual properties will then be offered to investors referred to as syndicate members.
reAlpha said its business model will help syndicate members simplify and finance property acquisition through syndicate formation. The company will manage the real estate investment to generate income in four ways: equity appreciation, rental income via Airbnb, compounding of investments, and profits from sales.
“Our mission is to democratize real estate investing and empower everyone to invest into real assets,” said Christie Currie, reAlpha’s CMO. “Instead of just enabling syndicate members to invest in individual properties, our Reg A+ provides the opportunity for our community of both retail and accredited investors to become shareholders before we go into this period of explosive growth.”
“Our proprietary algorithms, partnership network, and stellar leadership team provide an opportunity to make reAlpha a powerful force in the short-term rental market,” said Devanur. “The proceeds of this offering will permit us to scale our operations to create more investment opportunities for those who previously have not had access to the ground floor of early-stage, high-growth companies.”
reAlpha believes it sits at the intersection of four major seismic shifts, beginning with the transformation of consumer preferences to experiential short-term stays. They also aim to capitalize on the democratization of inaccessible markets, personal finance, and retail adoption of fractionalized ownership; the consolidation of single-family homeownership backed by institutional capital; and the integration of disconnected technology ecosystems in emerging industries.
To take advantage of these trends, the company will use a proprietary algorithm to source properties from the wholesale market, the reAlphaBRAIN, and score each property based on dozens of factors. reAlpha then selects and approves the properties with the highest scores.
“To us, investing in real estate is more than just financial returns. We are seeking to create community, and our Reg A+ is a powerful catalyst to do just that. First, we want people to experience the true pride of ownership. So, as an added perk, our Reg A+ investors will get credit to go and stay at reAlpha properties.” said Currie “Second, two per cent of every investment will go to our reImagine Fund, which will create up to $30 million in real estate for underrepresented populations as well as enable reAlpha’s workforce opportunity program.”
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