The Real Estate industry is an allowed type of investment asset for Regulation A+ offerings. In fact, because of people’s familiarity with what real estate generally is and the returns it can potentially generate, it’s not only allowed, but it seems to be the go-to area of Reg.A+ investor interest. Why Reg.A+? Because it’s the fastest and least expensive way for real estate companies to raise up to $50 million every twelve month period without the hassles of traditional IPOs.
While the Wall Street Journal is reporting that the market for IPOs is rebounding, major high-profile startups like Uber and Airbnb are still staying away from them due to concerns their companies would be valued at less than private fundraising rounds would be. Alternatively, we are seeing many real estate firms and REITs looking to go the Regulation A+ Offering route, and that makes sense. In fact, every company thinking about a traditional IPO should be at least considering going Reg.A+ instead – especially real estate related companies!
Most prospective real estate Reg.A+ deals seem to be targeting much less than the $50 million maximum. For example, Medalist Properties initially prepared to raise up to #30 million, then upped their target after they saw how much interest they were getting from investors. Now they are setting their sights for a listing on the OTCQX stock exchange – a strategy that industry consultants like the Reg.A Funding Group think is genius!
Real estate developers can look to Regulation A+ for just about any project they’re interested in pursuing: land acquisition, subdivision, retail, shopping center development, hotels, resorts, industrial complexes, high rise condos, etc. – the list goes on. And out-of-the-box companies like PotEstate.com are taking real estate investing to an even higher level in the untouched market of focusing on cannabis related real estate, a market projected to reach $20 billion by 2021!
You can clearly see real estate is the backbone of just about every industry. And Reg.A+ offerings are quickly becoming the vehicle of choice for all types of real estate related purchase and development. The issue is that most real estate developers aren’t even aware of the benefits of Reg.A+, because if they did know about them, there’s simply no way they’d even consider going IPO when such a better option is right at their fingertips.
We are definitely seeing signs that real estate offerings are taking the lead with Regulation A+ interest, both from an issuer and an investor perspective. There are many more examples of real estate companies that have qualified their offering with the Securities and Exchange Commission and are currently accepting investments from accredited and non-accredited investors alike. That’s what makes Reg.A+ so great for real estate investors: they can get access to deals that they may have previously been shut out of due to non-accredited status. Reg.A+ has leveled the playing field.
Real estate development is not for the faint of heart, but at least there are solid ways for companies in that industry to raise money to build successful projects, and even get a listing on a major exchange if that is an endgame they desire – all with keeping control and without the headaches, hassles, time-frames, delays, expenses, and general heartburn that comes with an IPO. The Reg.A Funding Group is here to help guide them through the process.