The real estate sector has been very progressive though and adopted crowdfunding software quickly
Today I have the pleasure of speaking with Brock Murray.
Brock is a Chief Executive Officer in Katipult (www.katipult.com), ready-made infrastructure to easily create, launch, and maintain a real estate crowdfunding platform.
Hello Brock a pleasure to talk to you,
First I wanted to know your opinion about the real estate crowdfunding
Real estate crowdfunding is the future of real estate investing. Its a global shift to an online approach and process for completing real estate financings in private markets. It’s growing rapidly around the world and its already very large.
What is exactly katipult?
Katipult is a fully compliant software product that allows firms to set up their own branded platform for real estate crowdfunding, With Katipult’s Real Estate Crowdfunding platform, you create integrated processes that span your investment origination, marketing, accounting, and investor communication - all in one platform.
Many clients we work with refer to their platform as a real estate syndication platform as they only deal with high net worth investors or investor management platform.
How many companies work with your software at this time?
We’ve been in the crowdfunding space since 2009 so we’ve assisted dozens of companies to date. We have compliant systems in 13 different countries.
It can be adapted to any country and its laws?
Yes of course. We built our Katipult software to be dynamic to handle the versatility our clients require. Business processes and compliance are configured to specific markets.
One of the problems I see is the distrust that might have an investor to transfer funds. How can this be solved?
People are getting more comfortable doing transactions online. Certain markets we work in like Italy, the transactions are actually handled by major financial institutions that are well known. But investors still need to perform due diligence on the investment opportunity and the firm raising the capital, their track record, etc.
Who do you think benefits the real estate crowdfunding, the developers, investors or end buyer?
Everyone. Investors get access to high quality investment opportunities that historically have only been available to ultra rich. The more credible firms that have a platform the more options are available to get your savings to make you money rather than sitting in a low interest bank account. Developers benefit from administrative efficiencies and ability to grow their investor base quickly and diversify their capital sources.
Do you think the global financial crisis has led to the development of real estate crowdfunding?
I think the lack of access to capital led to crowdfunding. I think when groups saw how great the technology was for hobby and donation projects, firms raising equity and debt took notice. The real estate sector has been very progressive though and adopted crowdfunding software quickly.
Spain is one of the countries where the housing bubble burst harder, do you think the real estate crowdfunding could be a way to recover the market?
That’s a tough question. I think democratizing the financial industry and creating more transparency is good for markets always. Private markets don’t have the transparency of public markets and real estate is largely in the private space. Having access to good real estate investments run by experienced professionals is a good start. The more people that get involved this way the healthier the market should be, and the less likely a person will buy a property on a terrible mortgage as they can participate in deals with dozens of other investors at what they can afford.
Thank you so much, Brock.