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QuietStream Financial and FullCapitalStack featured on NBC Charlotte

QuietStream Financial portfolio company FullCapitalStack was recently featured on NBC Charlotte’s 6 p.m. newscast.

NBC_CharlotteNBC Charlotte’s anchor and reporter Dianne Gallagher visited the QuietStream Financial headquarters in Charlotte to learn how QSF and its portfolio companies Investor Management Services and FullCapitalStack are helping clients raise capital for real estate projects using online investor management platforms.

The segment which aired Friday, July 17 concentrated on the SouthPark City Homes offering, which is raising $1.7 million in preferred equity for developer Saratoga Asset Management.

Enjoy the video:

FullCapitalStack Launches Groundbreaking $1.7 Million Offering for Charlotte Townhomes

FullCapitalStack, a QuietStream Financial portfolio company, has launched a $1.7 million preferred equity offering for the construction of 27 luxury townhomes in Charlotte’s upscale SouthPark neighborhood.

An artist's rendering of the SouthPark City Homes project.

An artist’s rendering of the SouthPark City Homes project.

The offering is one of the first Charlotte real estate projects to tap equity crowdfunding as part of its capital structure. FullCapitalStack’s online investment platform will make the offering accessible to all accredited investors in the U.S. Accredited investors are individuals with more than $200,000 in annual income or a net worth in excess of $1 million.

Charlotte-based developer Saratoga Asset Management (“Saratoga”) will sponsor the project, partnering with Charlotte-based homebuilder Alan Simonini Homes as the lead builder. Saratoga has contracts in place on four residential lots totaling 2.62 acres along Fairview Road in the SouthPark area. The upscale development, to be called SouthPark City Homes, will be constructed and sold over an estimated 28-month period concluding in late 2017.

“We are excited to launch this offering in our hometown to help local accredited investors access equity in a first-class Charlotte development,” FullCapitalStack Chief Investment Officer Nikki Baldonieri says. “Historically, real estate owners have been limited to raising equity capital from friends and existing contacts. Our online platform removes barriers and leverages technology so accredited investors can easily access, research and execute direct investments in real estate projects.”

The SouthPark City Homes development will consist of six separate buildings of either four or five units for a total of 27 luxury townhome units. Each three-story townhome will be approximately 2,761 square feet, with four bedrooms, 3.5 bathrooms, and a two-car garage. Amenities and features will include stainless steel appliances, hardwood and ceramic tile flooring, garden bathtubs, walk‐in closets, granite counter tops, fireplace, optional elevator and more.

“Working with FullCapitalStack allows us to broaden our relationships and present this project to the entire community of eligible investors, rather than just the partners in our existing circle,” Saratoga Asset Management Managing Partner Raymond Wetherington says. “This will be a development the SouthPark community can be proud of, and now it is a project neighbors can own a portion of as well.”

The SouthPark City Homes offering will begin accepting investments on July 15. Accredited investors can learn more, download complete investment details and read all disclosures at investments.fullcapitalstack.com.

About FullCapitalStack
FullCapitalStack, part of the QuietStream Financial portfolio, is an online investment portal for institutional and accredited investors seeking to invest in commercial real estate. FullCapitalStack provides investors unparalleled access to direct investments in office, multi-family, retail and other commercial real estate projects. In addition to its own exclusive listings, FullCapitalStack showcases investment offerings via partnership with Investor Management Services, a leading provider of online fundraising platforms for commercial real estate sponsors across the U.S. Visit FullCapitalStack at http://www.FullCapitalStack.com.

About QuietStream Financial
QuietStream Financial is an innovative portfolio of businesses serving commercial real estate owners, investors, borrowers and related professionals. Founded by CEO Robert J. Finlay, the company operates a portfolio of subsidiary businesses that provide a host of services, including investor management, fundraising, CMBS research and underwriting, defeasance, crowdfunding, marketing and other alternative asset management services. QuietStream Financial has more than $10 billion in assets under management and 100 employees. The firm is based in Charlotte, N.C. To learn more visit http://www.quietstreamfinancial.com.

Are You Ready for 204 Million New Investors?

By Robert J. Finlay — Chief Executive Officer

We recently marked a historic moment in American business as new SEC rules adopted last March became effective.

Robert J. Finlay is the founder and CEO of QuietStream Financial.

The new rules under Title IV of the JOBS Act lower barriers to raising equity capital for entrepreneurs and small companies by creating a simplified registration process for securities offerings of up to $50 million.

However, in my view, the most compelling aspect of the new rules is the potential to dramatically expand the pool of eligible investors. Accredited investors (those making more than $200,000 per year with a net worth $1 million excluding their primary residence) could already make investments. Reg A+ adds the rest of the entire general public to the pool of eligible investors, but with one limitation. There is no limit on how much a non-accredited investor may invest in a Tier 1 offering (offerings up to $20 million), but non-accredited investors are subject to a limit of 10% of the greater of their annual income or net worth on the amount they may invest in Tier 2 offerings (offerings up to $50 million).

To give you an idea of the magnitude of this change, there are estimated to be 8.6 million accredited investors in the United States. According to United States Census Bureau statistics, there are approximately 204 million people 18 years and older who are not accredited investors. In other words, the pool of eligible investors just increased almost 24 fold!

The other exciting aspect of Reg A+ is that it creates the framework for a secondary market in securities issued under Reg A+. Lack of liquidity was previously a factor that kept many eligible potential investors out of the market. The removal of transfer restrictions (except with respect to affiliates of the issuer) should also stimulate investment.

We are laser-focused on how these developments will affect your business. Our team of professionals at QuietStream Financial, Investor Management Services, and FullCapitalStack will monitor offerings, interpretations and enforcement actions under these new rules and provide you with periodic updates.

In the meantime, please take a moment to review our crowdfunding regulations chart, which summarizes various regulations governing raising capital.

Will peer-to-peer lending predict what happens next with real estate crowdfunding?

Peer-to-peer lending is about to get real — and commercial real estate crowdfunding won’t be far behind.

This week, we learned details of how Goldman Sachs will begin offering consumer loans via online platform. With plans to launch in 2016, there is little doubt the innovators who devised P2P lending will feel the heat.

As commercial real estate investment professionals, we need to pay close attention or risk being left in the dust. Technology is creating new opportunities for institutional investors and owners who are willing to adapt.

Innovators such as LendingClub and Prosper used financial technology (FinTech) to capitalize on a gap in the consumer and small-business lending markets after the Great Recession’s credit crunch. Seeing traditional banks and related lenders withdrawing, these platforms created a market for individuals to borrow small amounts from pools of cash supposedly invested by other individuals looking for new investment opportunities. The result has been billions of dollars in credit extended for debt consolidation, home improvements and other projects.

The concept is based on the idea that individual investors can now buy fractions of their peers’ debts — “peer-to-peer lending.” However, who really is the “peer” on the backside of this $15 billion to $30 billion market? It’s not savvy individuals making smart decisions for direct investing. Banks, institutional funds, and money managers looking for yield have powered the growth rate, funded the loans and have started to package the debt into securities. They are at times assisted by “first look” offers from the originators, and proprietary risk models to analyze the loans.

Most of the “peers” who own these loans are actually institutions, such as hedge funds and other investment pools. The borrower’s true peers likely end up only owning a piece of these loans through shares in a fund placed in their 401k, packaged and sourced by sophisticated institutions.

The standardization of consumer risk scores and credit profiling has propelled this new asset class into the securitization market, which has attracted new and additional capital. In turn, this will likely convert into more products at better rates for consumers.

What is the lesson here for commercial real estate investors? Our industry is on course to create the same type of standardization needed for institutional capital and lending efficiencies. These three factors are shaping the trend:

  • Crowdfunding has given real estate owners the ability to market their performance. Soon investors will be able to compare sponsor performance in standardized models.
  • FinTech is giving real estate owners the ability easily manage their investor base and post new, accessible offerings.
  • Real estate owners can now spend less time sourcing investors and more time managing their portfolios.

Although crowdfunding for real estate is in its infancy, there is already buzz about institutions and banks partnering with platforms to source product. Just like P2P lending, investors will soon find the ability to hold shares of a REIT in their 401Ks that primarily owns “crowdfunded” participations of equity in real estate.


Nikki BaldonieriBy Nikki Vasco | Chief Investment Officer | FullCapitalStack

QuietStream Financial’s Nikki Vasco to speak at SCI’s Marketplace Lending Securitization Seminar

QuietStream Financial executive Nikki Vasco will be a featured panelist at Structured Credit Investor’s Marketplace Lending Securitization Seminar. Vasco is a QuietStream managing director and the Chief Investment Officer of FullCapitalStack, QuietStream’s commercial real estate crowdfunding platform for institutional and accredited investors.

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Did Forbes swing and miss on investing like the uber-rich?

I have always been fascinated by how the world’s wealthiest individuals invest and what we can learn from them.

Recently, I flipped through some articles I’ve had filed away on the investing choices of the uber-wealthy. I found a Forbes story about how the richest people in the world have shifted their allocations. I read the piece again today. All I can say is this: Forbes missed one.

The advent of crowdfunding gives individual accredited investors access to deals once limited to the world's financial elite.

The advent of crowdfunding gives individual accredited investors access to deals once limited to the world’s financial elite.

It’s not a bad piece, or even inaccurate. It’s just missing a key piece of information about how we can invest like the wealthy.

It’s no secret the world’s elite invest differently than up-and-comers still working to get there. For starters (and I talk about this a lot), they invest much less in stocks and much more in hard assets like real estate and private equity. Forbes suggests that any investor looking to emulate the wealthy can shift more dollars to private equity, via stock in the largest PE firms, purchasing shares in a PE fund itself or working with an advisor who specializes in private investments.

Those three methods carry their own sets of challenges. For example, allocating more dollars to publicly traded private-equity stock doesn’t eliminate the volatility many wish to avoid in the market. As for investing directly in funds or with specialized advisors, those routes come with minimum investments that can price many investors out of the opportunity.

So what’s an accredited investor to do?

Here’s what Forbes missed: These changing allocations towards more exposure to private equity represent the wealthy making direct investments with partners they trust. The only secret sauce is that private equity offers exclusive, high-growth opportunities that are typically correlated with the success and failure of a business (ownership), and less dependent on the greater market performance.

Here’s why I get excited: Ten years ago those options available to the wealthy weren’t available to the rest of us. Even two or three years ago, most accredited investors didn’t have ready access to investments in hard assets through a relationship with a proven sponsor. Now they are accessible.

Crowdfunding and online solicitation changed the game. The investing world is becoming flat. Now, it’s possible for the average accredited investor to put their money into pools that support proven, trustworthy partners in real estate and operating companies. Allocations don’t have to be limited to a big publicly traded REIT or PE firm. Today, seasoned pros are putting technology to work and creating platforms that open trusted investing partnerships to a much wider segment.

Here’s where Forbes and I agree. The wealthiest investors in the world don’t allocate much to “buy, hope and pray mutual funds.” Instead, they pick investments with trusted partners that won’t be subject to stock market ups and down. For the first time in history, that advantage is now available to the rest of us.


Nikki VascoBy Nikki Vasco | Chief Investment Officer | FullCapitalStack

CrowdRabbit™ Launches National Crowdfunding Search Engine

Investors Can Search and Receive Listing Notifications Based on Unique Criteria

Built by a team of commercial real estate, financial services and entrepreneurship experts, CrowdRabbit™is the first comprehensive searchable directory that pulls crowdfunding projects from multiple platforms in every space.

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