Latest news with #CrowdStreet
Yahoo
20-05-2025
- Business
- Yahoo
‘Boundless greed:' Atlanta investment head sentenced to federal prison for $63 million fraud scheme
The head of a commercial real estate investment firm Atlanta Financial Center sentenced to more than seven years in federal prison for spending investments on personal items. The U.S. Department of Justice announced Elchonon 'Elie' Schwartz, of New York City, was sentenced to time in prison and will have to pay millions back in restitution to more than 800 investors after diverting funds for the Atlanta Financial Center and spending it on luxury items for himself. 'Schwartz's greed was boundless,' U.S. Attorney Theodore S. Hertzberg said in part. 'He callously abused the trust of hundreds of investors to line his own bank accounts.' [DOWNLOAD: Free WSB-TV News app for alerts as news breaks] The funds were intended to be invested in a commercial real estate complex. According to the U.S. Attorney's Office, Schwartz started his 'scheme to defraud commercial real estate investors' in May 2022. His investors used crowdfunding site CrowdStreet Marketplace to pay close to $63 million, including $54 million for a large commercial real estate complex in Atlanta, officials said. Another $9 million was invested for a mixed-use building in Miami Beach, Fla. TRENDING STORIES: Fannin County school play canceled over copyright violation, principal says GA student in ICE custody after mistaken traffic stop to have immigration hearing Be weather aware: Risk of strong to severe storms later tonight into early Wednesday USDOJ said Schwartz told his CrowdStreet investors he'd protect their money with separate bank accounts and would not mix the investments, using them only for the property they were intended for. In reality, the Justice Department said Schwartz took the money and put them in his personal bank account, personal brokerage account and other unrelated commercial real estate investments he had control of. According to USAO, Schwartz also bought luxury watches, invested in stocks and options in his brokerage account, and used some of the money to pay unrelated payroll expenses for his commercial real estate business. Then midway through July 2023, Schwartz' companies, which he founded to receive the funds from CrowdStreet investors, filed for bankruptcy, USAO said. On Feb. 12, Schwartz pled guilty to a single count of wire fraud. In court on Monday, Schwartz was sentenced to more than seven years in federal prison, followed by three years of supervised release. He'll also have to pay $45.08 million in restitution, according to federal officials. [SIGN UP: WSB-TV Daily Headlines Newsletter]
Business Upturn
15-05-2025
- Business
- Business Upturn
Crowd Street Sponsors Premier Venture Capital Event To Showcase Momentum in Self-Directed Private Market Investing
NEW YORK, May 15, 2025 (GLOBE NEWSWIRE) — Crowd Street , the direct-access private market investment platform dedicated to helping members reach their financial ambitions, today announced its sponsorship of Beyond Summit 2025 . Beyond Summit, which runs from May 19-21 in Carlsbad, Calif., is an annual event hosted by Allocate , a leading technology platform transforming private market investing for wealth advisors and family offices. The conference is a premier gathering designed to bring together leading limited partners, fund managers, venture and technology leaders to discuss the future of innovation and private markets investing. As the world of private market investing enters an increasingly exciting inflection point, Crowd Street's goal is to help individual investors gain access to private market opportunities that have historically been reserved for institutions and ultra-high-net-worth individuals. Through its presence at Beyond Summit, Crowd Street is reinforcing its commitment to providing more access and education across various asset classes in an effort to reimagine wealth-building strategies for a new generation of investors. 'Private markets are no longer a niche segment of the investment landscape – it is a thriving ecosystem with the potential to redefine how individual investors diversify their portfolios and work to build wealth,' said John Imbriglia, CEO of Crowd Street. 'Our mission is to help inspire and empower the millions of individual investors in this country who want to realize their financial goals through a self-directed platform. We have admired what Allocate has been building since it first started, so it makes sense to support them at the Beyond Summit. We believe the rising tide of private market investing will lift all boats. We currently have tens of thousands of accredited investors who are actively investing in real estate through our platform. As more and more people understand the potential for wealth creation in private markets, we expect our member base to grow significantly, especially as we work to expand our investment offerings to more asset classes such as private equity and private credit.' 'Like Crowd Street, we have seen the growing interest in Private Market investing from family offices and registered investment advisors,' said Samir Kaji, CEO of Allocate. 'We're grateful to have Crowd Street as a premier sponsor for this event. We are thrilled to share the energizing trajectory of our industry with Crowd Street – a company that appears to have what it takes to meet the moment and shape the future. Through the lens of Venture Capital, we have been at the forefront of all of this increased interest in private market investing. It feels like the demand that has been bubbling beneath the surface in recent years is getting ready to explode. So, it's a very exciting moment for Allocate and Crowd Street to stay closely connected.' The invite-only event will bring together over 200 of the most influential minds in the industry to explore the rising potential of private market investing. Last year's event welcomed more than 200 family offices, representing 13 countries and 70 cities, and included 70+ venture general partners. According to Allocate, attendees will hear from some of the most insightful investors in private markets and the innovation economy from leading companies such as OpenAI, Kleiner Perkins, Forerunner and more. These leaders will discuss what it takes to implement succession planning at a top-tier venture capital franchise and explore how private capital – coupled with a multi-asset investment approach from one of the world's largest family offices – is driving impactful societal and environmental change. Most importantly, attendees will receive unique insights into private market investments, gain greater education into the private market ecosystem, and understand the opportunity in self-directed access to private market investing. Together, Crowd Street and Allocate are committed to the larger purpose of giving access to self-directed investors to the expansive private market ecosystem that has an $87 trillion market opportunity (Blue Owl, February 2025). By providing the tools, education, and connections needed to navigate the private markets, individual investors will have the necessary understanding to explore various asset classes with confidence. As self-directed private market investing continues to gain traction, this collaboration is a testament to how the future of wealth-building may be rooted in shared access. This sponsorship follows Crowd Street's latest brand-building initiatives, which demonstrate the company's broader vision of providing self-directed access to private market investments that have typically been reserved for institutions and wealth managers. To learn more about Crowd Street's new vision that will help empower the next generation of private market investors, visit . About Crowd Street Crowd Street empowers its members to reach their financial ambitions through self-directed private market investments. The platform offers a carefully selected marketplace of alternative investment opportunities that have historically only been available to a small group of people. In addition to providing advanced tools, research, and insights to help investors confidently explore these exclusive opportunities, Crowd Street is also building a member experience rooted in trust and experience – further bridging the gap between investment opportunities and true financial wealth. Learn more at . Media Contact LaunchSquad [email protected]
Yahoo
22-04-2025
- Business
- Yahoo
How to invest in real estate without buying property
Real estate has a reputation for making people rich — and there's truth to that. Historically, real estate has delivered solid returns, outpaced inflation and offered a reliable stream of passive income. Home appreciation rates, for example, tend to grow 4.5 percent annually on average, according to data from the Federal Housing Finance Agency. But buying property carries risk. It can be expensive, and often comes with maintenance headaches that make the income you generate feel anything but passive. However, there are ways to tap into the potential upside of real estate without signing a mortgage, including buying REITs in your brokerage account or signing up for a crowdfunding platform. Whether you're priced out of the housing market or don't want the headache of tenants, these alternative real estate investments let you share in the profits without owning the asset. They all come with trade-offs though, and whether they make sense for you depends on how much work you're willing to put in and your ultimate goal with the investment. How it works: REITs are companies that own, operate or finance income-generating real estate. When you invest in a REIT, you're essentially buying shares in a company that makes money from properties — whether that's office buildings, apartments, shopping centers or even cell towers or manufactured homes. Publicly traded REITs are listed on stock exchanges and can be bought just like regular stocks. Why people invest: REITs are liquid, diversified and hands-off. They're known for paying high monthly dividends since U.S. law requires REITs to pay out at least 90 percent of their taxable income to shareholders. Expected returns: Historically, REITs offer average annual returns of about 11 percent, according to Nareit, but that can swing widely with the market. Risks: REITs have underperformed much of the U.S. stock market over the past five years, due in large part to a lull in the real estate market and high interest rates. Also, while REITs usually offer a high dividend, those dividends can quickly get cut if the real estate market stagnates. And dividends are taxed as ordinary income, not at the lower capital gains rate. How it works: Platforms such as Fundrise, YieldStreet and Crowd Street let you invest in real estate development or income-producing properties with as little as $10 (though some require as much as $25,000). You can pool your money with other investors through these real estate crowdfunding platforms to fund commercial or residential projects. Other apps, such as Groundfloor, let you buy into fractional real estate debt starting at $100. You make money by funding short-term real estate loans. Groundfloor connects you to borrowers who need quick cash to renovate and sell properties. You invest in a piece of that loan, and when the borrower sells or refinances the property, you get paid back — your principal plus interest. However, you need to carefully vet the loans you're making — it could take years to collect if the person defaults or the property goes into foreclosure. Why people invest: It's low-barrier, passive and gives you exposure to deals usually reserved for accredited investors. Expected returns: About 4.5 to 11 percent average annually, depending on the platform and risk level of the investment. Risks: These are long-term, illiquid investments. You can't pull your money out easily, and it's usually locked up for three to five years. Some platforms also come with higher fees than you'd pay to own REITs. How it works: These are exchange-traded funds that hold a basket of REITs or real estate-related stocks. They might include stocks of real estate developers and operators alongside REITs. You're buying into an entire sector with one click. Why people invest: Real estate ETFs are easy to buy, highly liquid and low cost. They're great for beginners or people who want to diversify their portfolios beyond stocks and bonds. They also tend to be an affordable option. Vanguard's Real Estate ETF (VNQ), for example, has an expense ratio of only 0.13 percent. Expected returns: About 6 to 10 percent average per year, depending on overall real estate market trends. Risks: Like any ETF, they're vulnerable to market volatility and interest rate increases. Similarly, returns depend heavily on macroeconomic factors like inflation and rate hikes. How it works: Real estate syndication and private equity real estate funds both pool money from multiple investors to fund real estate projects — but the barriers to entry are generally much higher than crowdsourcing platforms like Fundrise. Private equity real estate funds are mostly reserved for wealthier investors. The sponsor combines investor capital with borrowed funds to finance deals, aiming to generate returns for everyone involved. These deals are typically offered as whole funds, meaning you invest in a bundle of properties without much say over what's in the mix. Real estate syndication, on the other hand, can be slightly more accessible. Investors get a share of the ownership and profits but don't handle day-to-day decisions. Deals are offered one at a time, so you can pick exactly what you want to invest in. You'll see the projected numbers upfront and can choose the projects that align with your goals and risk tolerance. Why people invest: It's a way to earn steady, predictable income without owning property. Expected returns: About 6 to 8 percent annually, though it varies widely depending on the project, timeline and arrangement. Risks: These arrangements can go sideways fast if the operator or sponsor doesn't know what they're doing. With syndications, you'll need to assess the sponsor's track record and the deal's financial projections and risk factors. They also generally require a lot of capital (think $250,000 or more), and you may need to be an accredited investor to get in on the action. If you're interested in this type of real estate investing, it may pay off to consult a financial advisor first. Need an advisor? If you're looking for expert guidance when it comes to managing your investments or planning for retirement, Bankrate's AdvisorMatch can connect you to a CFP® professional to help you achieve your financial goals. How it works: This one breaks the rules a bit, since you're technically buying property. But instead of buying a home to live in, more people (especially millennials and Gen Zers) are buying investment properties first — then continuing to rent their own place. You might buy commercial property, a short-term rental in a tourist area, a duplex where you rent out both units or a small single-family home in a more affordable state than where you live. Many investors hire property managers to run day-to-day operations and maintenance in order to make it as passive as possible. Why people invest: To build wealth through rental income and property appreciation. The idea is to skip the down payment grind, rent where you live and let your investments pay for your future dream home. Expected returns: Varies depending on rent prices, property appreciation and property management costs. Risks: You're still a property owner, so you're on the hook for vacancies, maintenance and economic downturns. For many people, investing in real estate through REITs and real estate ETFs makes sense if you're trying to diversify your portfolio. Since the early 2000s, a portfolio with at least 5 percent holdings in real estate — such as REITs — showed better returns and lower risk than a traditional 60/40 equity/bond portfolio, according to an analysis by Morningstar. But don't treat these options like a shortcut to getting rich. When it comes to platforms like Groundfloor, Fundrise or other crowdfunding options like syndication, you'll need to pay attention to the details. Your outcomes depend heavily on your personal risk tolerance and how much time you're willing to spend doing the legwork. You'll need to pick individual deals, weigh risk grades, track timelines and deal with less liquidity. For people who don't want to be landlords or can't afford to buy into pricey markets like New York or San Francisco, these alternatives offer a way in. You get a slice of the action — some exposure to real estate, a potential income stream and a shot at upside growth — without going all-in on a mortgage or property management. But don't go in thinking these investments will make you rich overnight. Make sure to do your homework and ask questions. Dig into the numbers. Don't let slick marketing or the promise of outsized returns cloud your judgment. And remember: if it sounds too good to be true, it usually is. Lower entry costs: Some options start at $10, not $100,000. Diverse portfolio: Since real estate isn't closely correlated to equity or bond returns, it can help you diversify your investment portfolio. Passive income: Many of these options generate recurring cash flow. Liquidity (in some cases): REITs and ETFs can be sold on demand, unlike houses. Limited control: You can't pick the paint color or tenants. You also don't participate in the full upside, you only share in a portion of the income. Fees: Fund managers, platforms and sponsors take their cut. Sometimes a big cut. Illiquidity: Except for REITs and ETFs, you'll need to commit to locking your money up for the long haul, usually at least three to five years. Due diligence required: You need to research platforms, understand risks and vet opportunities. You don't need to own a house or collect rent checks to make money in real estate. REITs, ETFs, crowdfunding platforms and syndications offer a chance to put money into the sector with less startup capital. However, real estate without property is still real investing. Know the risks, set your expectations and pick the strategy that fits your long-term financial goals. Editorial Disclaimer: All investors are advised to conduct their own independent research into investment strategies before making an investment decision. In addition, investors are advised that past investment product performance is no guarantee of future price appreciation.
