Financial Poise

Crowdfunding Company Offers Variable Returns Topping at 10%

New York City-based real estate crowdfunding platform CityFunders, which launched in June, Tuesday announced a new investment program, InvestSelect, enabling investors to choose their rate of return based on investment amount.

CityFunders pools small investments together into a lump sum, creating a way for individuals who may have only a minimum net worth to invest in real estate, while giving developers an alternative source of financing.

CityFunders says it is offering a $350,000 participation. Investors who invest $30,000 or more will receive a 10% annual return, and those who invest $25,000 or less will receive a 9% annual return. The minimum investment is $5,000 and investments must be made in minimum increments of $5,000.

“We felt the option of being able to earn a whole point more … is really going to speak to investors out there,” says David Behin, co-founder of  CityFunders and author of a recent Accredited Investor Markets article about risks and rewards associated with real estate investing.

The launch of the InvestSelect investment program is in conjunction with a new property offering, a $2.6 million project in Crown Heights, Brooklyn, that the company is helping to finance. The 6,000-square-foot, two-story commercial building, already has committed tenants and is located in what the developers say is a vibrant neighborhood. Goodwill Industries, a provider of behavioral health services, has fully leased half of the ground floor and the entire second floor for five years.

The sponsors, Andrew J. Epstein and Dawson Stellberger, have been involved in New York real estate management and investment for a combined 30 years. The partners own and manage more than a dozen buildings in Brooklyn. They are both members of Bushwack Capital and have partnered with CityFunders on previous deals.

 “The new CityFunders InvestSelect program provides investors with the control over their investments that they deserve, and we are excited about bringing this new program to the crowd,” said Behin.

About Michele Schechter

Michele has been a director with Financial Poise since 2012.

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