Welcome to RealCap! We are excited to announce the launch of our new company. We look forward to the opportunity to provide a new and unique way to invest in real estate and self-storage properties. The crowdfunding industry is growing exponentially, and we strongly believe that crowdfunding will soon become one of the most common and most effective ways for people to invest. This post is to provide you with a brief history of why RealCap was created. You can also learn more about us and our team HERE.
Where It All Started
I began my professional career as a financial advisor working for a large institutional firm. I have always had a passion for investments and running my own business, so this felt like a great opportunity to learn the industry and to manage my own clients. I’ve always been an entrepreneur at heart, and I knew that this job would teach me a lot about all of the responsibilities that came with running my own shop.
My passion for real estate developed at a young age. I was never a kid who liked reading books about fictional characters and made up stories. Instead, I had an addiction to reading books about investing, entrepreneurship, and personal finance. I wanted to learn everything there was to know about money and being my own boss. This is when I started to realize the amazing potential of investing in real estate. I was still an undergraduate business student at the time, so I was pretty low on funds for investing (or eating for that matter). I began to save as much as I could in order to have enough for a down payment on my first property.
Turning My Hobby Into a Business
Real estate became a big hobby of mine, and I would work on that whenever I had spare time. In 2014, I started working with Tim Soto, co-founder and COO of RealCap. Tim had been investing in real estate since 1995. He had been looking to partner with other investors in order to raise more capital. His experience and knowledge of different markets was a huge asset for me and enabled me to find bigger and better deals to invest in.
I was still working as a financial advisor, and after a few years of working in that industry, I began to notice a common trend. Most of my clients couldn't handle the ups and downs of the stock market anymore and they were looking for other avenues to invest their money. I was well aware of the power of investing in real estate, but I realized that my clients didn't have the experience, knowledge, or time to successfully invest in real estate on their own.
I had the option of investing their money in REIT’s (Real Estate Investment Trusts), but these didn’t provide the same benefits and potential (more on REIT’s in a later post). REIT’s are also subject to market fluctuations, so this wouldn’t help much in regards to my clients who cringed at every minor downturn in the market. I started to wonder, there has to be a solution to fix this, right?
There Has To Be a Better Way to Invest
I began looking into other ways to invest. After a lot of thought and a lot of research, it came to me. Crowdfunding. The JOBS Act of 2012 changed a number of laws and regulations in regards to raising capital. The main goal of the law was to encourage funding of businesses by easing various securities regulations. This law created a huge opportunity. I started discussing my ideas with Tim. Tim and I had been partnering on real estate deals together for a few years. We were looking for a way to scale our real estate business faster. It was becoming more and more difficult for us to get funding for deals through traditional banks. We had a lot of other investments tying up most of our capital, as well.
Through crowdfunding, we are able to raise a lot more money than we would be able to on our own. This enables us to invest in higher quality, higher value real estate. It also gives us the ability to purchase properties at steep discounts. We are able to accomplish this by submitting 100% cash offers and closing quickly. I approached Tim with my idea to start a crowdfunding real estate business. His reaction was exactly what I was hoping for. “I’m in. 100%”, Tim told me after I explained my plan to him. Tim was able to see my vision. We both saw the opportunity for us to grow our real estate business and provide a new opportunity for our investors.
.After months of planning and hard work, RealCap is finally here! We are extremely excited to start this new venture. We look forward to growing with our investors and building something special. The Self Storage Opportunity Fund (our first offering) is now open to accredited investors. Click on the Investments tabs if you are interested in investing or if you want to learn more.