MassVenture is an online real estate equity portal which is the first of its kind in Texas. This has opened doors to investors regardless of their financial status and enables investors to contribute to deals they love. Entrepreneurs are able to gain capital at low cost and get their businesses up and running without having to worry about delays incurred with more traditional sources of funding. This has been made possible by the new regulations passed in Texas which permits any Texan to invest in business and real estate projects without paper or legal work for sums as low as $500. Previously, only those with tens of thousands were able to get in or the real estate return market.
Real estate crowdfunding is a portfolio diversifier and is an effective financial tool. MassVenture connects potential investors with projects regardless of accreditation status to invest in real estate together. This is an economy booster for the state as the money from Texans stays in Texas but allows investors to support statewide, regional, and local business ventures. These deals are sourced through the online community by industry professionals who are well-versed in all things real estate. They will bring you opportunities to find investors for your project, of find a project for willing investors in mixed-use, commercial, and residential properties along with other willing investors who want to get in on a piece of the action. These investors can be made up of both accredited and non-accredited investors who will diversify their real estate investment through a wide range of investments, maximizing returns.
Entrepreneurs can raise up to $1 million per 12-month period from non-accredited ventures and MassVenture believes that these projects should be based on sound ideas, detailed plans, drive, and talent to put them into place in the real world. Entrepreneurs will then be able to raise money much more quickly than with traditional methods through the pool of real estate investors found on MassVenture.
Submitting a project is very simple and requires an application, preparation of your offering with the required due diligence materials, share your project through the platform and social media, raise the capital in the offers cycle (30, 45, 60, 90 days), and reach your goal. Invested funds are held in escrow and will remain there until the goal has been fully reached. Should full funding not occur, 100% of the investors’ funds are returned.
If the goal is reached, investors will own shares in the project and the business owner will receive the invested funds to begin the project. Investors are not required to pay any fees to participate in MassVenture and developers are required to pay a non-refundable fee required for administrative services, due diligence, and documentation. In addition, developers will be charged a variable % commission fee. Entrepreneurs remain in control of their operations as shareholders are passive project investors.
MassVenture opens up the market to those who were previously unable to get in on real estate investing and helps entrepreneurs to get their businesses running faster. This is good news not only for investors and entrepreneurs but new business also provides job growth and economic stability.
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