Crowdfunding can be a powerful tool for any operator. Today’s guest, Kam Zainabadi of Park Place Investment, joins us to shed light on the topic as well as how his company addresses the pain points in the space. We hear about Kam’s real estate investing ventures and how he found crowdfunding.
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Although this way of raising capital has opened up a lot in the past decade, most crowdfunding platforms place great restrictions on deals either through high fees or overly stringent vetting processes. Kam talks about how the Park Place platform looks to democratize crowdfunding and the mechanisms they use to ensure more fairness. He also walks us through the process of putting a deal on Park Place, including vetting, services they provide, and tracking deal flow. They aim to be a partner in deals rather than taking money from syndicators. To hear more about the benefits of crowdfunding your real estate deals, tune in today!
Key Points From This Episode:
- Get to know Kam and his journey as a real estate investor.
- Changes that have happened in crowdfunding and how 506(c) shifted the landscape.
- How syndicators benefit from crowdfunding by accessing more investors.
- Why real estate crowdfunding is usually done through 506(c) and not Reg A.
- The change in the raise limit in the crowdfunding exemption.
- The crowdfunding pain points that Park Place is looking to solve.
- Park Place’s democratization approach and not taking a cut from money raised.
- What happens after a syndication posts a deal on the Park Place platform.
- Park Place’s ideal partners and why they do not work with large syndications.
- How Park Place tracks deals that have gone through and how they vet operators.
- Meeting new investors, a recent business improvement, and the biggest contributor to Kam’s success.
[bctt tweet=”Crowdfunding allows real estate professionals such as syndicators to take advantage of that because as you know, syndicates were limited to the pool of investors they knew. — Kam Zainabadi” username=”whitney_sewell”]
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About Kam Zainabadi
Kam Zainabadi’s interest in real estate started around 2008 when he finished his residency training and started working as a medical doctor. This, as we all know, coincided with the financial crisis which led to the housing crash. Knowing that this is an opportunity of a lifetime, he started buying distressed single-family properties and renting them. He soon learned about the tremendous power of leverage and how he can use it to secure large amounts of assets with small amounts of money down. As the market recovered, he converted many of the single-family holdings into multifamily units throughout Southern California, via 1031 Exchange. 1031 Exchange was another tax-protected modality that he used to increase his net assets held. His interest in real estate also branched out into angel investing in tech startups. He has invested in over five startups. At the same time, through his network of investors, he got introduced into real estate syndications. He invested in several syndicated deals and has continued to look for more opportunities. He also became interested in real estate crowdfunding which combined his interest in technology and real estate. However, having invested in several crowdfunding platforms, he found many shortcomings in the structure of the deals. This prompted him to bring a team together to create Park Place Investment. The mission of PPI is to democratize real estate crowdfunding by removing barriers than traditional syndications have into entering real estate crowdfunding.
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