RealCap, a real estate crowdfunding company based in Santa Monica, California, has launched its first investment offering, the Self Storage Opportunity Fund.
RealCap will be raising USD10 million from accredited investors for the project in order to acquire value-add, self-storage properties nationwide.
Providing 10-15 per cent target returns for investors, the passive investment will be open on 22 August, with a minimum investment of USD10,000 per investor.
"The real estate investment world for individual investors has historically been deeply flawed," says Matt Schuberg, co-founder and CEO of RealCap. "High fees, low returns, and high minimums are not a good combination for investors. We launched RealCap to resolve these issues by cutting out the middlemen and migrating the entire transaction process online.”
Self-storage is one of the strongest sectors in the real estate industry. Rents have consistently been rising, occupancy remains high and there is a limited supply of new construction which has prevented an oversupply crises. One of the reasons why supply remains in check is that building new units can take years to obtain local approvals. Currently, the self-storage sector is a USD30 billion-plus industry with nearly 55,000 units comprising over 2.5 billion square feet of rentable space.
Schuberg says: "The goal with our first fund is to provide investors with potential double-digit returns by acquiring under-performing self-storage properties and improving management inefficiencies. We take a fundamental approach to evaluate the property and how additional sources of income can be added to improve the quality of the asset, including solar ports for RV and boat storage, energy buy-back agreements, and cell towers.”
The founding members of the RealCap team have been investing in real estate for over 20 years. The core philosophy of RealCap is to provide investors with the opportunity to leverage the founder's experience and expertise in order to take advantage of the benefits of owning and investing in real estate.