Real Estate Crowdfunding: Version 2.0

Modern day crowdfunding kicked into high gear in 2012 when President Barack Obama signed into law the JOBS Act, which made investing in startups and small companies easier and more accessible to the “crowd.” Within the crowdfunding space, real estate specifically has matured in ways that other asset classes have not because they failed to generate the same level of interest.

The best way to understand the evolution of the real estate crowdfunding industry is to start with the difference between Real Estate Crowdfunding 1.0 and Real Estate Crowdfunding 2.0. The former is a project-by-project syndication model, allowing the crowd to choose individual investments through one of the various “platform” websites, while the latter is a crowdfunded REIT model, enabling the crowd to invest in a diversified portfolio of commercial real estate.

Real Estate Crowdfunding 1.0 involves acquiring a property or originating a loan with the intent to raise money from the crowd for each individual acquisition or origination. The crowdfunding platform that aggregates the individual investments often charges an upfront fee and/or an ongoing servicing fee throughout the life of the deal. This model gives people the ability to invest in one or many specific deals that appeal to them.

Real Estate Crowdfunding 2.0 reinvented real estate crowdfunding by offering an investment into a “crowdfunded REIT.” Instead of choosing investments based on pretty pictures, the crowd can now invest in a diversified portfolio of real estate selected by professional real estate investors, while also benefiting from passive, tax-advantaged income in the form of dividends.

In addition to diversification, many crowdfunded REITs provide an entry point into real estate without the sizable commissions charged by financial brokers, which can potentially translate into greater profits. As more people become part of the real estate investment crowd, costs will continue to come down and middlemen will continue to become disintermediated. With real estate crowdfunding, the power is truly with the people.

Alex Wills

Mr. Wills is the Marketing Director and Head of Product for Streitwise.

Prior to joining Streitwise, Mr. Wills was Head of Paid Media at Bitcoin IRA and Fortress Gold Group. Previously, Mr. Wills was the Director of Lead Generation at GTMA, a real estate marketing agency, where he founded the paid media department that oversaw a large nationwide portfolio of multifamily properties. Mr. Wills holds a Bachelor of Science degree in Marketing from the University of Florida.

SW Manager, LLC (“Manager”) is a wholly-owned subsidiary of and controlled by Tryperion Holdings, LLC (our “Sponsor”). Manager is the external manager and advisor of 1st Streit Office Inc. (“1st Streit Office”) and 1st Streit Office Operating Partnership LP (our “Operating Partnership” and, together with 1st Streit Office, “Our Current Offering”). 1st Streit Office is the sole general partner of our Operating Partnership, through which all of our assets will be owned and substantially all of our operations will be conducted. All references herein to “Streitwise” refer, as applicable, to Manager, 1st Streit Office, the Operating Partnership, or any of their affiliates (collectively, the “Streitwise Entities”). Unless explicitly stated to the contrary, all references to “we,” “us,” and/or “our” shall refer to the Streitwise Entities. By using Streitwise, you accept our Terms of Service and Privacy Policy.

An offering statement regarding this offering has been filed with the SEC. This offering is structured as a non-traded real estate investment trust, or “REIT,” under Regulation A+ of the JOBS Act. The SEC has qualified that offering statement which only means that Streitwise may make sales of the securities described by that offering statement. It does not mean that the SEC has approved, passed upon the merits or passed upon the accuracy or completeness of the information in the offering statement. You should read the Offering Circular before making any investment which is available here: streitwise.com/oc

You may have been referred to Streitwise by a third-party (“Solicitor”). Compensation to any Solicitor may be up to $200 per email registration. A Solicitor may promote and/or may advertise Streitwise’s investment services and may offer independent analysis and reviews of Streitwise’s services. Streitwise and any Solicitor are not under common ownership or otherwise related entities. We cannot ensure the accuracy of the data provided from any Solicitor.

Performance: Past performance is not a guarantee of future results. All historical returns, target returns, or hypothetical projections may not reflect actual future performance.
Risk: This investment involves a certain level of risk and may result in partial or total loss. We cannot guarantee that we will reach our target return for our investors.
Tax: Prospective investors should confer with their tax advisors regarding the tax consequences based on their particular circumstances. Neither Streitwise nor any Solicitor assumes responsibility for the tax consequences for any investor.
Liquidity: Investments in private placements are highly illiquid and those investors who cannot hold an investment for the long term should not invest. See Stockholder Redemption Plan in the OC.

¹ Dividends & returns: Current annualized dividend based on the most recent dividend declaration as of the quarter ending 9/30/2024. Dividend return calculations based on NAV at the time of dividend return. 3Q24 dividend payout of $0.13/share equates to a 7.2% dividend based on the current NAV. The REIT has averaged a 7.2% annualized dividend yield since 2020 and a 8.3% annualized dividend yield since 2017 based on the average NAV for the respective periods. See Quarterly Report for all returns history.
² Source: FTSE NAREIT All Equity REITs vs S&P 500.
³Sponsor Performance: Related to investments by Sponsor, Tryperion Holdings, as part of one of its prior programs, and not of any of the Streitwise Entities. Reflects gross IRR on realized investments in the Sponsor’s investment portfolio since inception. Sponsor performance data as of 4Q23.
⁴Target returns: We will seek to invest in real properties and other real estate-related assets that we believe can produce a strong return through a combination of cash flow and appreciation. We cannot guarantee that we will reach this target return for our investors.

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