CHICAGO, Nov. 9, 2015 /PRNewswire/ -- Five real estate crowdfunding platforms today jointly announced the acquisition of Tycoon Real Estate, a California-based platform, which the group intends to overhaul and revamp. Tycoon gained notoriety after its founder and former CEO appeared on ABC's "Shark Tank" earlier this year.
The purchase of Tycoon Real Estate is the first-ever acquisition of a real estate crowdfunding platform. The purchasers, American Homeowner Preservation, Patch of Land, Peer Realty, CrowdFranchise, and EquityRoots did not disclose specific financial terms of the all-cash transaction.
"There is a larger awareness of real estate crowdfunding thanks to the Shark Tank episode featuring Tycoon," said Jason Fritton, CEO of Patch of Land. "Although it didn't turn out well, we have an opportunity to set the record straight about the regulatory environment that allows for crowdfunding and how successful companies are leveraging the JOBS Act and SEC regulations to crowdfund hundreds of millions of dollars in real estate."
The acquisition gives the leaders in the crowdfunding industry a unique opportunity to "change the Tycoon portal into an educational platform to show the world why the Sharks were wrong about the industry," said Jordan Fishfeld CEO of Peer Realty.
"We are excited about the acquisition of Tycoon," said Mandy Calara, CEO of CrowdFranchise. "With the recent approval of Title III, the timing is ideal. Now, almost anyone will be able to invest."
The SEC approved Title III of the JOBS Act on Friday, October 30, opening up crowdfunding to non-accredited investors.
"There's a powerful sense of community in this nascent industry," said Jorge Newbery, CEO of American Homeowner Preservation. "To see five platforms collaborate on this effort foretells a bright future for crowdfunding."
"There's an instinctive sense of progress in letting people go online and find local investments in hotels, real estate or other franchised businesses," said Bhavik Dani, dealflow organizer at EquityRoots.com. "We are excited to join four other platforms that share a common vision: online capital formation is efficient, effective and a great way to involve the community."
Tycoon Real Estate, an early company in the real estate crowdfunding market, has offered both residential and commercial real estate investment opportunities to its user base. The company gained national attention from McDaniel's pitch on the Shark Tank episode. The sharks were not impressed and questioned the idea, especially Mark Cuban who was the first to say "I'm Out." Even though the sharks apparently failed to grasp the potential of the industry, McDaniel valiantly kept pitching, defending crowdfunding. In the end, Kevin O'Leary offered $50,000 for 50% of Tycoon, which McDaniel declined. Less than a year later, the five crowdfunding platforms are stepping up to acquire 100% of Tycoon.
About American Homeowner Preservation:
American Homeowner Preservation crowdfunds the purchases of pools of nonperforming mortgages from banks at big discounts, then offers sustainable solutions to keep families at risk of foreclosure in their homes. AHP offers investors annual returns of 9 - 12%. To learn more about AHP, visit http://www.ahpinvest.com
About Patch of Land:
Patch of Land (POL) is a leading alternative solution for real estate financing that brings borrowers and lenders together through a simple online interface. Patch of Land solves the problem of inefficient, fragmented, and opaque real estate lending with proprietary technology and data-driven processes that provide transparency, and scalable, efficient underwriting. Patch of Land meets the increasing demand for real estate lending with a system that eliminates unnecessary fees and compresses the amount of time it takes a borrower to receive funding approval. The Patch of Land marketplace offers investors easy diversification into real estate with low minimums and a best-in-class, secured loan structure, while providing borrowers access to reliable capital and pre-funding for residential and commercial real estate projects. For more information about Patch of Land please visit www.patchofland.com
PeerRealty is the premier real estate crowdfunding platform. At PeerRealty we believe that no investment portfolio can be truly diversified without a real estate component, and we are proud to offer an efficient means to gain that diversification. With our streamlined, online portal, PeerRealty offers a marketplace where investors can participate in high-quality real estate deals with the nation's most reputable developers, deals that have been historically difficult to access. For more information, visit www.peerrealty.com
EquityRoots is a crowdfunding platform exclusively dedicated to premium branded hotel assets. EquityRoots is a platform where passive investors go to perform due-diligence, sign contracts, and safely transfer investment funds with the click of a button and for as little as $15k in Marriott, Hilton, IHG, and Hyatt licensed hotels. EquityRoots, Inc. is a Delaware Corporation and proudly headquartered in the Chicago Board of Trade Building. For more information, visit www.equityroots.com
CrowdFranchise is a crowdfunding platform that allows communities to invest in and manage franchises they think would be successful in their areas. CrowdFranchise team chooses brands that support the community-funded franchise model to feature on the site, initially pitching growing brands and startups with fewer than 20 stores that would benefit from the community-owned model. To learn more, visit,www.crowdfranchise.com
To view the original version on PR Newswire, visit:http://www.prnewswire.com/news-releases/chicago-crowdfunding-consortium-acquires-tycoon-real-estate-300175355.html
SOURCE Patch of Land