RealCap, a real estate crowdfunding company, has launched its first investment platform with the Self Storage Opportunity Fund. The company intends to raise $10 million from accredited investors to acquire storage properties nationwide. Expected returns are 10 percent to 15 percent, with a minimum investment of $10,000 per investor, according to a press release. Launched on Aug. 22, the fund hadn’t received any investments as of 2:30 p.m. ET today.
"The real estate investment world for individual investors has historically been deeply flawed," said Matt Schuberg, co-founder and CEO. "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."
The founding members of RealCap have more than 20 years of real estate investment experience and were attracted to self-storage due to a stable record of rising rents, high occupancy and limited supply of new construction, the release stated.
"The goal with our first fund is to provide investors with potential double-digit returns by acquiring underperforming self-storage properties and improving management inefficiencies,” Schuberg said. “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."
Based in Santa Monica, Calif., RealCap intends to target passive investments in “high-quality, cash-flowing real estate and self-storage properties without requiring large sums of capital,” the release stated.