How it Works
Investment crowdfunding provides people with the opportunity to pool their money and invest in a property to receive a monetary return on investment (ROI). Investment crowdfunding has continually grown since 2012 following the passing of the Jumpstart Our Business Startups (JOBS) Act. The JOBS Act eliminated an exclusion that prevented individuals or companies who were raising funds, from contacting accredited investors.
The process begins by selecting real estate that is strategically located. Next, we generate a feasibility study to determine if the site meets our high standards for development. With a positive outcome, Capital Investments will conduct our due diligence to confirm the study's findings.
During this phase, we are simultaneously seeking to establish the best financing options to maximize returns and reduce risk. We do this by seeking the right amount of leverage along with the appropriate financial terms, best suited for each investment.
After performing due diligence we close on the property and begin development. Throughout the development phase, we continually monitor and manage the investment to stabilize the investment. Once the property is stabilized, the property will be put up for sale. Upon the sale of the asset, dividends will be distributed to investors based upon their share in the investment.
Capital Investments uses the following criteria for raising capital for development projects:
Selecting good property
Pre-underwriting the investment
Managing the development of the property
Constructing the building
Stabilizing the property
These five premises drive high quality, lower costs and minimizes risk.
Income Producing Properties
Another approach Capital Investments takes to real estate investing, is to purchase existing income producing properties. This provides a stable, consistent cash flow to investors over a long term.
The selection process takes similar due diligence steps to the New Development investment fund.
Selecting real estate that is strategically located, such as on a corner at a traffic light along an established retail corridor. As always, a feasibility study is conducted to determine if the property meets the standards for a good return on investment.
Financing options are also important to existing income-producing properties to maximize returns and reduce risk.
The holding period for these investments are determined by market conditions and the feasibility study, as it will show which year a sale would be most advantageous for investors.
Cornerstone Properties is the sister company to Capital Investments.
Cornerstone Properties handles the acquisition, development and construction of Capital Investment's new developments.
Founder and CEO
Founder & CEO