For $5,000, Arizona residents can become investors in a west Phoenix apartment complex.
Why it matters: Neighborhood Ventures, Arizona’s largest real estate crowdfunding company, aims to open up the often-profitable but hard-to-break-into world of real estate investing , CEO Jamison Manwaring told us.
- It’s a win-win, he says. Allowing non-wealthy people to participate gives them an opportunity to diversify their investment portfolio and it allows smaller developers to expand their investor base.
The big picture: Neighborhood Ventures purchased its latest property, a 123-unit apartment complex near Grand Canyon University, for $13 million last month — at about a 30% discount.
- The previous owner had purchased the property at the height of the market in 2022 and spent about $2 million to renovate it but ended up in foreclosure after interest rates surged, Manwaring said.
- Neighborhood Venture plans to bring in its own operations team, lease up the currently vacant units and then sell the complex in three years at a profit.