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NOTEBOOK: Crowdfunding makes an appearance in Greater Des Moines

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You can’t call it a trend or even a big movement yet, but investors who pool their dollars to buy commercial real estate are showing up in the Greater Des Moines market. While some national publications claim that 90 percent of real estate deals involve some form of crowdfunding, CBRE|Hubbell Commercial broker and investment property specialist Rick Krause said the numbers aren’t nearly that staggering in the local market. He estimated that such investor groups show up in 10 percent or less of commercial real estate deals. However, he does say it is one of several elements contributing to a robust market for multifamily properties. There are two forces at play in crowdfunding. Investors can pool their funds, sometimes for as little as $1,000 per person, and make a play in a relatively stable investment class. The people putting the funds together walk away with management and acquisition fees, and they could be part of the investment pool as well. “I’m sitting down over coffee with people who are talking about these things,” Krause said.