Florida based Benworth Capital has launched a real estate crowdfunding platform called Fundrageous. Bedworth is an alternative mortgage provider based in Miami. The new portal was announced at the eMergeAmericas conference held this week. Benworth founder and CEO of both companies, Bernie Navarro, was quoted on the launch;
“Real estate investing has long been relegated to a private club for the select few. Our intent is to democratize real estate investing, benefitting both the borrower as well as accredited investor.”
“Investors are often presented with two equally bad options,” he added, “either overcrowded, small-yield opportunities; or investments with large potential but little transparency.”
Fundrageous is said to allow accredited investors to participate in first mortgages for residential investment or commercial properties. With Florida poised to legalize intrastate crowdfunding it was unclear if this would alter the approach and allow non-accredited investors to participate in offers.
Fundrageous execs refusing to let status quo prevail & demanding we democratize #realestate #investment NOW #eMerge15 pic.twitter.com/TfYk05ikbl
— Fundrageous (@Fundrageous) May 5, 2015
Navarro is said to be raising $50 million. The loans will be between $250,000 to $6 million each and could carry interest rates of 8 percent to 11 percent. The loans will be shorter term bridge loans.
“There is a reason they are coming to us,” Navarro said of the borrowers. “There may be something in their credit profile a bank doesn’t want to touch. We give them two years to find long-term financing.”
“It’s very transparent with the way investors are assigned fractionalization of the note to the way the note is recorded.”
Fundrageous states it has access to some of the country’s most exciting real estate deals, investors across the U.S. and Latin America. Fundrageous is now looking for borrowers in Florida.
