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ArborCrowd, the first crowdfunding platform launched by a real estate institution, announced a new offering today that allows investors to acquire equity interests in Biscayne 112, a Class-A, ground-up development located at 11200 Biscayne Boulevard in North Miami, Fla.

Adam is Co-Founder and COO of ArborCrowd, the first crowdfunding platform to be launched by a real estate institution. In this role, he oversees ArborCrowd’s corporate growth strategies.

In the past, direct investment in commercial real estate tended to be the purview of two groups: the very rich and large institutional investors, including pension plans and university endowments. Developers were not allowed to publicly solicit investments.

Owning property, either directly or indirectly, can add diversity to a portfolio and yield value to investors on several levels. “Real estate is a tangible asset with inherent value unlike many other investment vehicles such as stocks, which many consider as gambling,” says Adam Kaufman, co-founder and managing director of ArborCrowd.

Founded in 2016 as the crowdfunding arm of the mortgage lender Arbor Realty Trust, it offers accredited investors the opportunity to invest in select deals under the 506(c) exemption, with minimums of either $25,000 or $50,000.

Many of the crowdfunding companies “were not founded by established and successful real estate professionals, but were largely created by individuals in the tech sector with little to no experience investing in real estate,” says Adam Kaufman, co-founder and managing director of real estate crowdfunding platform ArborCrowd.

In the often murky world of real estate crowdfunding, ArborCrowd has made transparency a core value, according to its cofounder.

No one knows the exact timing of the next downturn, but the market is certainly nearing the end of its current cycle. By examining historical trends, we can discern a few likely scenarios that may affect real estate crowdfunding and the industry as a whole during a downcycle.

ArborCrowd, the crowdfunding operation of Arbor Commercial Mortgage, is aiming to complete four or five transactions this year.

This is a great episode for those wanting to know more about investing in real estate through crowdfunding platforms, for those wanting to launch a new company and scale quickly, and to learn how ArborCrowd picks the few deals they fund out of the hundreds they underwrite and review.